Unit 1Pirates of the InternetIt ' no secret that online piracy has decimated the music industry as millio ns of people stopped buying CDs and started steali ng their favorite songs by downloading them from the internet. Now the hign-tech thieves are coming after Hollywood. Illegal downloading of full-length feature films is a relatively new phenomenon, but it ' s becoming easier and easier to do. The people running America 's movie studios know thatif they don ' t do someth-ingnd fast---they could be in the same boat as the record companies. Correspodent: ____________________“ What' s really at stake for the movie industry with all this privacy ” Chernin: “ Well, I think, you know, ultimately, our absolute features. ” Peter Chernin runs 20th Cen tury Fox, one of the biggest studios in Hollywood. He knows the pirates of the In ternet are gaining on him. Corresp ont: “ Dcyou know how many movies are being dow nl oaded today: in one day: in the Un ited States ” Chernin：“think it ' psobably in the hundreds of thousands, if not millions ”Correspondent: “Andt 'osly going to grow. ”Chernin: “It ' s only going to grow. ^Somebody can put a perfect digital copy up on the internet. A perfect digital copy, all right. And with the click of mouse, send out a millio n copies all over the world, in an nsta nt. ”5And it ' as free. If that takes hold, kiss Hollywood goodbye. Chernin recently organizeda “ summit between studio moguls and some highschool and college kids---the people most likely to be downloading.Chernin: “And we said, ‘Let 's come up with a challenge. Let 's g five movies, and see if they can find them online. ' And we all sat aro and picked five movies, four of which hadn 'bteen released yet. And then we came back half an hour later. They had found all five movies that we gave them. ” Correspondent: “Even the ones that hadn 't even been released yet ”Chernin: “ Eventhe ones that hadn 'et ven been released yet. ” Correspondent: “Did these kids have any sense that they were stealing ” Chernin: “You know it ' s•…it ' s a theikd dichotomy. Ithey know it 'stsealing, and I don'tthink they think it 'wsrong. I think they have an attitude of, ‘It 's here. '” The Internet copy of last year Signs, starring Mel Gibson, was stolen even before director M. NightShyamalan could organize the premiere. Correspondent: “Themovie was about to be released. When did the first bootleg copy appear ”6Shyamalan: “Two weeks before it or three weeks before it. Before theInternet age, when somebody bootlegged a movie, the only outlet they had was to see it to those vendors on Times Square, where they had the boxes set up outside and they say, ‘Heyw, e have Signs---it 's neovt en out yet. ' And you walk by and you know it's illegal. But now, because it the digital age, you can see, like, a clean copy. Its no longer the kind'of the sleazy guyin Times Square with the box. It 'jusst, oh, it 'ons thismovies get on the Internet How did that happe n” Chernin: “ Through absolute act of theft. Someone steals a print from the editor foom;someone steals a print from the person: the composer who ' s doing themusic …absolute physical theft, steals a print, makes a digital copy, and one of The Matrix Reloaded have also been bootlegged from DVDs sent to reviewers or ad agencies, or circulated among companies that do special effects, or subtitles. Chernin: “ Thither way that pre-released movies end up (stole n) is that people go to …there are lots of scree nings that happen in this industry P eople go to those screenings with a camcorder, with a dig it al camcorder, sit in the back, turn the camcorder on … Correspondent: “ And record it. ” This is one of those recorded-off-the-screen copies of Disney ' s Pirates of the Caribbean. Not great quality, but not awful either. And while it used to take forever to download a movie, anyone with a high-speed Internet connection can now have a full-le ngth film in an hour or two.Saaf: “ WAhlls is just one of many websites where basicallypeople, hackers if you will, announce their piracy releases.” Ran ( runs a compa ny calledMedia Defen der that helps movie studios combatonline piracy. Correspondent: “Look at this, all these new mesovthi at I haven ' teven seen yet, all here. ”Saaf: “ Yep. ”Correspondent: “ Secondhand Lions that just came out. Sometimes I feel like I 'm person in this country who has never downloaded anything. But maybe there is a few others of us out there. So I 'm gnogi to ask you to show us Kazaa, that 's the biggest beautiful site, and I have to go,Click. Corresp ondent: Houploads it. ” Correspondent: And there you go.” eDigeihjepidownloading site, right ” Saaf: “ Right. Kazaamedia desktop. Kazaa is the largest peer-to- peer network. ”It 's called peer-to-peer because computer users are sharing files8with each other, with no middleman. All Kazaa does is providethe software to make that sharing possible. When we went online with Randy Saaf, nearly four million other Kazaausers were there with us, sharing every kind of digital file. Saaf: “ Audio,documents, images, software, and video. If you wanted a movie, you would click on the video section, and then you would type in a search phrase. And basically what this is doing now, it is asking the people on the peer-to-peer network,‘ Whohas Finding Memo'”Within seconds, 191 computers sent an answer:“ Wehave it. T”his is Finding Memo, crisp picture and sound, downloaded free from Kazaa a month before its release for video rental or sale. If you don'wt ant to watch it on a little computer screen, you don't have to. On thenewest computers, you can just“burn ” it onto a DVD and watch it on your big-screen TV. that 's a dagger pointed rightat the heart of Hollywood. Chernin: “ Wheremovies make the bulk of their money is onDVD and home videos. 50 perce nt of the reve nues for any movie come out of home video …'Correspondent: “15percent ” Cher nin: “ 50 perce nt so that if piracy occurs and it wipes out your homevideo profits or ultimately your televisi on profits, you are out of bus in ess. No movies will get made. ” Eve n id im ageitmade, Night Shyamala n says that wouldn ' t be any good, because profits would be negligible, so budgets would shrink dramatically. Shyamalan: “Andslowly it will degrade what' possible in that art form. ” Rosso: Tech no logy always wins. Always. You can' s hut it down. ” Wayne Rosso is Hollywood ' s en emy. They call him a pirate, but officially he' she preside nt of Grokster, another peer-to-peer network that works just like Kazaa. Correspondent: “ Ok, I downloaded your softwar e. ” Rosso: “ Right. Correspondent: “ Ok,did I pay to do that ” Rosso: “ No,it ' fsee. ” Correspondent: “ Sovho pays you How do you make money” R osso:how many people use Grokster Rosso: “ Teimillion. Correspondent:“ Tennilli on people have used it. Rosso: “ Amon th. ” Corresp ondent:Correspondent: I Use“it to download music, movies, software,AndCorrespondent:growingvideo games what else ” Rosso: “I will aeeu m e.hSve no way ofknowing what people are downloading. Correspondent: “ That jus S a fig leaf. You are facilitating, allowing, helping people steal. ” Rosso: “ Wehave no idea what the content is, and whatever it is …” Corresp onde “ Well, you may not know the specifics, but you know that ' s what yc site …Rosso: “ Andwe can' stop it. We have no control over it. ”Correspondent: “ Buyou are there for that purpose, that is why youexist, of course it is. Rosso: “ Nono, no, no, no, no. ”Correspondent:“ Come)n, this is the fig leaf part. 'Rosso: “ No,no, no, no, no. ”Shyamala n: “Hetotally con formable with putt ing on his site a stole npiece of material. Am I wrong in that If my movie was bootlegged, he' dbe totally comfortable pu卄ing 计on his site ” Correspondent: “ Because I have nothing to do with it. Shyamalan: “ Yeaight. Correspondent:“ Because just provided the software. Shyamalan: “ Yearhjht. So, immediately, how can you ever have a11conversation with him Because he' taken a stolen materialand he is totally fine with passing it around in his house. All these, allthese are illegal activities. So, I ' m not, it ' s just my house, Iany thi ng wrong. ” But it is Rosso who has the law on his side. A federaljudge has ruled that Grokster and other file-swapp ing n etworks are nol_liable for what their downloaders are doing. Rosso: “ Sowe arecompletely legal, and un fort un ately this is someth ing the en terta inmentindustry refuses to accept. They seem to think the judge ' s decision nothing but a typo. ” The studios are appealing that court ruling. And they may follow the music in dustry and beg in to sue in dividuals who download movies. And they are fighting the pirates in other ways, with ads about people whose jobs are at risk because of the piracy-people like the carpenters and painters who work on film sets. At the same time, Hollywood is trying to keep copies of movies from leaking in the first place. Chernin: “You will very seldom go to an early screening of a movie right now where, probably you don' notice until you pay atte nti on, some one' isot in the front of that auditorium with in frared bino culars look ing for somebody with a camcorder. ”12And once a movie is released, or copies do beg in to leak, the studios hire people like Randy Saaf to hack the hackers. Saaf: “ What we' re just trying to do is make the actual pirated content difficult to find. And the way we do that is by, you know, serv ing up fake files. ” It “ spoofing. saaf and his employees spend their days on Kazaa and Grokster, offering up thousands of files that look like copies of new movies, but aren ' t. Correspondent: “ So if I had clicked on any number of those Finding Nemo offeri ngs, I could have clicked on one of yours, or somebody likeyou. And what would I have found after my hour and ahalf of downloading ” Saaf: “ it might just be a blank screen or something. You know, typically speaking, what we push out is just not the real content. Correspondent: “ Whayou are trying to do is make this so impossible, so infuriating that people will just throw up their hands and say it ' s just easier for me to go rent this thing, buy the DVD or whatever, it ' jsst easier. Saaf: “ Right. C b rrespondent: “ That y our goal. ”Saaf : “ Right. ”13Correspondent: “ Doethat work Is that a good idea ”Rosso:“ Nolt doesn ' work. I mean I don' b lame them but it doesn ' workbecause what happens is that the community cleanses itself of the spoofs. He means that downloaders quickly spread the word online about how to tell the fake movie files from the real thing. Correspondent:“It ' s like an arms（军备竞赛），isn ' t it ” Chernin: “That ' s exactly whait ' s like. It ' s like an arms race. There will be, you know, theya step ahead. We ' re gonna try and get that step back. ” Rosso:“going away. Chernin: The gen erally accepted estimatmisrthtttattell you one thing: I ' bet on the hackers. Correspondent: “ Tha t hey will break whatever …” Rosso: “The studios come up with. ”Corresp ondent: “ The compa nies throw at them. ”Hollywood knows that dow nl oadi ng off the Internet is the way millions of consumers want to get their entertainment--- and that isn ' tgoing away. Chernin: The gen erally accepted estimatmisrthtttat60 milli on America ns have dow nl oaded file-shari ng software onto their computers. ” Corresp ondent: “ 60 millio n. ”14Cher nin: “ At60 millio n America ns, that ' as mai nstreamproduct. That ' not a bunch of college kids or, you know, a bunch of computer geeks. That ' s America. ” So, in stead of trying to stop it en tirely, the studios are look ing for ways to embrace it, but get paid too. Wayne Rosso says the best way is to negotiate some kinds of licensing deal with him. Rosso: “ Ifthe movie industry acts now and starts exploring alter natives and soluti ons with guys like me, hopefully they won problem. ” Correspondent: “ What if they try to buy you ” Rosso:in al heartbeat. ” Correspondent: “ You would sell, Grokster would sell toa movie studio Rosso: “ Sure, came. ” The idea of making deals with what . .Peter . ” Chernin. calls...“abunch.. .of“ crooks“ •”doesn ' a ppeal to Hollywood. In stead, Fox and other studios have just laun ched their own site, Movieli nk, where con sumers can dow nl oad a film for a modest fee, between three and five dollars. Chernin: “I thinkyou would love the ideathat you don ' t have to go to the video store. You can do this. And that what we ' re working15on. But in order for that to be effective, we have to stopprivacy, because the most effective bus in ess model in the world can ' tNot that Peter Chernin is in terested, but he woncompete with free.have the chanee to buy Grokster, at least not from Wayne Rosso. A fewdays ago, Rosso announ eed that he is leav ing Grokster to take over as preside nt of ano ther file-swapp ing software eompa ny, this one based inSpain. Grokster will eon ti nue un der new man ageme nt.Unit 2A plan to build the world's first airport for launching commercial spacecraft in New Mexico is the latest development in the new space race, a race among private compa nies and billio naire en trepre neurs to carry pay ing passe ngers into space and to kick-start a new in dustry, astro tourism.The man who is leading the race may not be familiar to you, but to astronauts, pilots, and aeron autical engin eers -basically to anyone who knows anything about aircraft desig n -Burt Ruta n is a lege nd, an aeron autical engin eer whose latest aircraft is the world's first private spaceship. As he told 60 Minutes correspondent Ed Bradley when he first met him a little over a year ago, if his idea flies, someday space travel may be cheap eno ugh and safe eno ugh for ordi nary people to go where only astr on auts have gone beforeThe White Kni ght is a rather unu sual look ing aircraft, built just for the purpose of carry ing a rocket pla ne called Spaceship On e,the first spacecraft built by private en terprise.White Kni ght and Spaceship One are the latest creati ons of Burt Ruta n. They're part of his dream to develop a commercial travel bus in ess in space."There will be a new industry. And we are just now in a beginning. I will predict that in 12 or 15 years, there will be tens of thousands, maybe even hundreds of thousa nds of people that fly, and see that black sky," says Ruta n.On Ju ne 21,2004, White Kn ight took off from an airstrip in Mojave, Calif., carrying Ruta n's spaceship. It took 63 minu tes to reach the launch altitude of 47,000 feet. Once there, the White Kni ght crew prepared to release the spaceship.The fierce acceleratio n slammed Mike Melvill, the pilot, back in his seat. He put Spaceship One into a n ear vertical trajectory, un til, as pla nn ed, the fuel ran out.Still climbing like a spent bullet, Melvill hoped to gain as much altitude as possible to reach space before the ship began falling back to earth.By the time the spaceship reached the end of its climb, it was 22 miles off course. But it had, just barely, reached an altitude of just over 62 miles —the internationally recog ni zed boun dary of space.It was the news Rutan had been waiting for. Falling back to Earth from an altitude of 62 miles,SpaceShipOne's tilting wing, a revolutionary innovation called the feather, caused the rocket plane to position itself for a relatively benign re-entry and turned the spaceship into a glider.SpaceShip One glided to a flawless landing before a crowd of thousa nds."After that June flight, I felt like I was floating around and just once in a while touch ing the groun d," remembers Ruta n. "We had an operable space pla ne."Ruta n's "operable space pla ne" was built by a compa ny with only 130 employees at a cost of just $25 million. He believes his success has ended the government's monopoly on space travel, and opened it up to the ordinary citizen."I concluded that for affordable travel to happen, the little guy had to do it because he had the incen tive for a bus in ess," says Ruta n.Does Ruta n view this as a bus in ess ven ture or a tech no logical challe nge"It's a tech no logical challe nge first. And it's a dream I had whe n I was 12," he says. Ruta n started build ing model airpla nes whe n he was seve n years old, in Dyen uba, Calif., where he grew up."I was fascinated by putting balsa wood together and see how it would fly," he remembers. "A nd whe n I started hav ing the capability to do con tests and actually win a trophy by making a better model, the n I was hooked."He's been hooked ever since. He designed his first airplane in 1968 and flew it four years later. Since then his airplanes have become known for their stunning looks, inno vative desig n and tech no logical sophisticati on.Ruta n bega n desig ning a spaceship n early a decade ago, after sett ing up set up his own aeron autical research and desig n firm. By the year 2000, he had tur ned his desig ns into models and was test ing them outside his office.Whe n I got to the point that I knew that I could make a safe spaceship that would fly a manned space mission -- when I say, 'I,' not the government, our little team -- I told Paul Allen, 'I think we can do this.' And he immediately said, 'Go with it.'"Paul Allen co-founded Microsoft and is one of the richest men in the world. His decision to pump $25 million into Rutan's company, Scaled Composites, was the vote of con fide nee that his engin eers n eeded to proceed."That was a heck of a challe nge to put in front of some people like us, where we're told, 'Well, you can't do that. You wanna see We can do this," says Pete Sebold. Work on White Kni ght and SpaceShip On estarted four years ago in secret. Both aircraft were custom made from scratch by a team of 12 engin eers using layers of tough carb on fabric glued together with epoxy. Desig ned to be light-weight, SpaceShipOnecan withstand the stress of re-entry because of the radical way it comes back into the atmosphere, like a badm in ton shuttlecock or a birdie.He showed 60 Minu tes how it works."Feathering the wing is kind of a dramatic thing, in that it changes the whole configuration of the airplane," he explains. "And this is done in space, okay It's done after you fly into space.""We have done six reentries. Three of them from space and three of them from lower altitudes. And some of them have even come down upside down. And the airplane by itself straightens itself rightup," Rutan explains.By September 2004, Rutan was ready for his next challenge: an attempt to win a $10 million prize to be the first to fly a privately funded spacecraft into space, and do it twice in two weeks."After we had flown the June flight, and we had reached the goal of our program, then the most important thing was to win that prize," says Rutan.That prize was the An sari X Prize —an extraord inary competiti on created in 1996 to stimulate private investment in space.The first of the two flights was piloted, once again, by Mike Melvill.September's flight put Melville's skill and training to the test. As he was climbing out of the atmosphere, the spacecraft suddenly went into a series of rolls.How concerned was he？"Well, I thought I could work it out. I'm very confident when I'm flying a plane when I've got the controls in my hand. I always believed I can fix this no matter how bad it gets," says Melville. SpaceShipOnerolled 29 times before he regained control. The remainder of the flight was without incident, and Melvill made the 20-minute glide back to the Mojave airport. The landing on that September afternoon was flawless.Because Rutan wanted to attempt the second required flight just four days later, the engineers had little time to find out what had gone wrong. Working 12-hour shifts, they discovered they didn't need to fix the spacecraft, just the way in which the pilots flew it.For the second flight, it was test pilot Brian Binnie's turn to fly SpaceShipOne. The spaceship flew upward on a perfect trajectory, breaking through to space. Rutan's SpaceShipOne had flown to space twice in two weeks, captured the X Prize worth $10 million, and won bragging rights over the space establishment."You know I was wondering what they are feeling, 'They' being that other space agency," Rutan says laughing. "You know, quite frankly, I think the big guys, the Boeings, the Lockheeds,the nay-say people at Houston, I think they're looking at each other now and saying 'We're screwed!' Because, I'll tell you something, I have a hell of a lot bigger goal than they do!""The astronauts say that the most exciting experience is floating around in a spacesuit," says Rutan, showing off his own plans. "But I don't agree. A space suit is an awful thing. It constrains you and it has noisy fans running. Now look over here. It's quiet. And you're out here watching the world go by in what you might call a 'spiritual dome.' Well, that, to me, is better than a space suit because you're not con strai ned."He also has a visi on for a resort hotel in space, and says it all could be accomplished in the foreseeable future. Rutan believes it is the dawn of a new era.He expla in s, "I think we've prove n now that the small guys can build a space ship and go to space. And not only that, we've convin ced a rich guy, a very rich guy, to come to this country andbuild a space program to take everyday people to space."That "rich guy" is Richard Branson, the En glish billi on aire who owns Virgin Atla ntic Airlines. Branson has signed a $120 million deal with Rutan to build five spaceships for pay ing customers. Named "Virgin Galactic," it will be the world's first "spaceli ne." Flights are expected to begi n in 2008."We believe by flying tens of thousands of people to space, and making that a profitable bus in ess, that that will lead into affordable orbital travel," says Ruta n. Ruta n thinks there "absolutely" is a market for this.With tickets initially going for $200,000, the market is limited. Nevertheless, Virgin Galactic says 38,000 people have put dow n a deposit for a seat, and 90 of those have paid the full $200,000.But Ruta n has ano ther visio n. "The goal is affordable travel above low-Earth orbit. In other words, affordable travel for us to go to the moon. Affordable travel. That means not just NASA astronauts, but thousands of people being able to go to the moon," he says. "I'd like to go. Would n't you"By Harry RadliffeUnited 3For 300 years, the sea has bee n clos ing in on New Orlea ns. As the coastal erosi on continues, it is estimated the city will be off shore in 90 years. Even in good weather, New Orlea ns is sin ki ng. As the city beg ins what is likely to be the biggest demolitio n project in . history, the question is, can we or should we put New Orleans back together aga in?Life has been returning to high and dry land on Bourbon Street, but to find the monumental challenge facing the city you have to visit neighborhoods you have never heard of. On Lizardi Street, 60 Minutes took a walk with the men in charge of finishing what Katri na started.Corresp ondent Scott Pelleyreports.Before Katrina, "There would be noise and activity and families and people, and childre n, and, you kno w, I have n't see n a child in a month here," says Greg Meffert, a city official who, with his colleague Mike Centineo, is trying to figure out how much of the city will have to be demolished.Meffert, who is in charge of city planning, says it is "very possible" up to 50,000 houses will have to be bulldozed. Right now, most of the homes in the city are unin habitable.Meffert faces a difficult task. Every time he goes to a house site here, he says, "It's one more knife in me that says, 'She did ano ther one. She did ano ther on e,'" expla ins Meffert, "she" meaning Hurrica ne Katri na.Whe n you walk through these n eighborhoods and you see the houses, you get a sense of the pain of the in dividual families. But you don't get a sense of what has happened to the city of NewOrleans itself.It is estimated that there were 200,000 homes in New Orleans, and 120,000 of them were damaged by the flood.The part of the city known as the lower Ninth Ward received some of the heaviest flooding. The houses are splintered block after block after block, almost as if the city had bee n carpet-bombed in war.Meffert says that before the storm, New Orleans had a population of 470,000-480,000 people. Realistically, he thi nks that half of those reside nts wo n't be coming back.The possessions of thousands of families, the stuff collected over lifetimes is suddenly garbage, clawed up into mountains in city parks. With so much gone already, should New Orlea ns pick up right where it was>"We should be thinking about a gradual pullout of New Orleans, and starting to rebuild people's homes, bus in esses and in dustry in places that can last more tha n 80 years," says Tim Kusky, a professor of earth scie nces at St. Louis Uni versity.Kusky talks about a withdrawal of the city and explains that coastal erosion was throw n in to fast forward by Katri na. He says by 2095, the coastl ine will pass the city and New Orleans will be what he calls a "fish bowl." "Because New Orleans is going to be 15 to 18 feet below sea level, sitting off the coast of North America surroun ded by a 50- to 100-foot-tall levee system to protect the city," expla ins Kusky.He says the city will be completely surroun ded by the Gulf of Mexico just 90 years from now.Si nee this story aired on Nov. 20, there has bee n con siderable discussi on about whether New Orlea ns really is sinking, in clud ing onCBS News' blog, Public Eye"That's the projection, because we are losing land on the Mississippi Delta at a rate of 25 to 30 square miles per year. That's two acres per hour that are si nking below sea level," says Kusky.That process could only be slowed, in theory, by massive restorati on of wetla nds. In the mean time, while Kusky's advice is to head for the hills, some New Orlea ns reside nts are hop ing to head home.Vera Fulton has lived most of her 81 years on Lizardi Street and returned to her home rece ntly for the first time since being evacuated."When they say 'storm,' I leave. I can't swim and I can't drink it. So what I do, I leave," says Vera, who has lost her home to two hurrica nes.Vera is intent on coming back. "I don't have no other home, where rm going"Three gen eratio ns of Fult ons, Vera's son Irvin Jr., his wife Gay and their son Irvi n, 3rd, live around Lizardi Street.Irvin says his house is "just flat" and he did n't have in sura nee.That's the dilemma. The only thing they have left is land prone to disaster. They want to rebuild, and the city plans to let them.At Vera's house, Mike Centenio, the city's top building official, told 60 Minutes homes can go up as long as they meet what is called the "100-year flood level."The federal gover nment had set a flood-level, but did n't figure on a levee failure that would flood parts of the city.The official level is several feet off the ground. If people meet the requirement, they can rebuild their homes, despite the fact that we saw, for example, a refrigerator lifted to the top of a carport by the floodwaters.Asked whether allow ing people to rebuild makes sen se, Centenio says it is "go ing to take some study in g."Right now, he says the flood level requireme nt is the law.Twelve weeks after the storm hit, no one has an an swer to where people should go. An estimated 80,000 homes had no in sura nee, and for now, the biggest grant a family can get from the federal gover nment is $26,200.Those without flood in sura nce face an un certa in road ahead, tryi ng to piece their lives and homes back together."I don't think any of us get to be made whole. I don't know of an ybody that's eve n getting back to where they were. It's just a matter of how much you lost," says Meffert.No one wants to risk more losses until the levees are fixed but there is not a lot of con fide nce in that. There's evide nce some of the levee walls may have failed from bad desig n or lousy workma nship.Fixing them is up to Colonel Richard Wagenaar, who told 60 Minutes , that by next summer, the levees will withstand a Category 3 storm. But for a Category 5 storm, Con gress would have to double the levee height to 30 feet.。