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Just how is music piracy - wherein consumers download artists' music without paying for it - affecting the Australian independent music industry? It's an important question.

We broached the topic with Nick O'Byrne [pictured right], General Manager of AIR, the Australian Independent Record Label Association, who are the fine folks behind the Jagermeister Independent Music Awards and ausindies.com.au.

What's your opinion on music 'piracy', Nick?

If you download music without the permission of the rights holder - that is, the artists and/or their label - then you are stealing. Permission is the key word here.

I've heard and read a million justifications for illegal downloading but in the end I can't help thinking that it comes down to a selfish decision made by the downloader... Every time you download illegally you are asking, "Is my 'need' or 'want' for this song more important than the value that the artist or label attributes to the song?"  If you say yes, then you are putting your interests above that of the rights holder. It's selfish, it's stealing.

A piece of music has an intrinsic value. Don't forget that every song took time to write, record, mix and master. Mixing, mastering and recording cost money, instruments cost money, marketing and manufacture costs money. We rarely discuss the years of practice and hard work that it takes to master the craft of songwriting, arranging and playing an instrument. Is that really worth nothing? 

Finally, record labels are not the bad guys here. An indie label record deal often sees the artist make approximately 25% of retail price for every album sold. But who has the ability to put it into the store? Who invested money in marketing and manufacture? There are so many important investments along the chain. Every single one of those investments is imperative to getting the music out into the world.

Do you see it as a positive or negative thing for artists?

I still think that this culture of taking and consuming without recognition for the artist is not a good thing, but we're not naive enough to think that the proliferation of file sharing is 100% bad. There's certainly benefits for artists in that P2P sharing is the cheapest form of distribution and it allows potential audiences to take risks with your music. But again, permission is the key word.

Also, we know that the live music industry is booming, which is at least partly attributable to illegal downloading. The problem is that not every artist plays live music. What about producers? What about the support industries around recording? 

The long term view is that if we don't have a sustainable "recording" industry, then music of a high quality simply won't get released as much because it rarely pays back its investment. If that happens then audiences and live music may dwindle, and the whole industry could suffer. 

What - if anything - should we do to combat this mentality? 

Education and a shit hot business model that no-one has yet put in place. 

We're striving for a business model that encourages the audience to listen to a wide variety of music at an cost that is built into their day to day service provider bills. That will happen. As long as there is enough return on investment for the labels and rights holders then everyone could still be a winner.

Should such acts be accepted as the norm, or should industry bodies and labels continue to push against the tide through lawsuits and fear-mongering? Is there a better way?

It is the norm isn't it? We don't have a choice to accept it as the norm. Doesn't mean it is right, though. My honest belief is that we are going through a necessary process. A process of negotiation between ISPs, rights holders, Government and users. It's a long and frustrating process, but a necessary one to find a solution where everyone can get the music that they want and everyone can get paid. 

Is there a better way? I doubt it, it's a long and protracted negotiation from two or three sides with opposing views. But we will get there.

If the copyright industries just sat down and gave up then there would be no industry left. From an Independent Label perspective, we're not talking about the protection of billion dollar profits here, we're talking about the protection of our mortgages, rent, kids education, jobs and the funds needed to pay for our next album. There's a lot at stake here.

Should the onus be on the artists to try harder for fans' financial support in the face of technological evolution?

I hate the idea that an artist now has to work harder to provide benefit to their fans, otherwise they'll just get stolen them. That said, the greatest benefit of piracy has been the need for artists to think about how they relate to their fans and how they can provide more value to them. This isn't a choice, it's a necessity for survival. You can't be an artist in an ivory tower, you have to generate real relationships with fans in order for them to hand over money. As an artist this is more rewarding and as a fan this is incredibly exciting. 

When we do find an equitable solution to the music industry's financial woes, this principle will remain. The best artists will continue to foster great relationships with fans.

Finally, has piracy helped create a level playing field between the independent music industry and the majors?

Small businesses are more flexible than big business. It's easier for small business to relate to fans, it's easier to provide value, experiment and stay ahead of the game with creativity and resourcefulness. That said, the independent industry doesn't have a financial cushion provided by venture capitalists, or 40 years of super-profits. Major labels can continue losing money and ride out the storm until we start working out how to make a profit from this industry while indies might just have to shut down if they continue to lose money.

Thanks for your time, Nick.

Nick O’Byrne is the General Manager of the Australian Independent Record Labels Association (AIR). It’s AIR’s job to help small music businesses, independent record labels and independent artists run their businesses better. AIR holds the annual Australian Independent Music Awards and publishes the Australian Independent Charts. Prior to his work at AIR he was a part The John Butler Trio’s management team, and co-ordinator of The JB Seed Fund.

Nick started his career as a musician, studying classical music at the VCA and playing rock, hip hop and jazz wherever he could get a gig. These days he spends his down-time in Melbourne playing the vibraphone or locked up in a studio writing and releasing rad electronic pop music. He also releases the odd compilation album and plans pretentious parties for hipsters.

For more info on AIR and Australian independent music, visit http://www.ausindies.com.au/