Ruling means dark days for P2P users?

NEWS

Friday's ruling that the makers of Grokster and Morpheus aren't liable for copyright infringement occurring as a result of people using their peer-to-peer software could spell bad news for the file traders themselves. Although the ruling is being hailed as a victory by file-swapping supporters, record labels are unlikely to step back from their attempts to stomp out free file-trading, which they view as a threat to their survival. In fact, the ruling could accelerate the labels' plans to go after individual users, especially when coupled with a decision on Thursday in a separate case that gives them more power to unmask the identity of individual file swappers. In that decision, a judge said Internet service provider Verizon had 14 days to turn over the name of a subscriber accused of offering music files for download using the Kazaa file-swapping service. On Friday, representatives for the Recording Industry Association of America (RIAA) hinted the industry group would step up its efforts to pursue individuals in the wake of both decisions. "We are pleased with the Court's affirmation that individual users are accountable for illegally uploading and downloading copyrighted works off of publicly accessible peer-to-peer networks," RIAA chief executive Hilary Rosen said in a statement. "This is precisely the issue we have been seeking to focus the public's attention on, and yesterday's decision in the Verizon matter makes clear that individual infringers cannot expect to remain anonymous when they engage in this illegal activity." If upheld, Friday's ruling on Grokster and Morpheus could make it harder for the record industry to go after technology that allows people to trade files, provided the companies that offer such tools have no control over how their technology is used. As a result, record companies are going to have to find other targets for their legal wrath. "The obvious alternative is what the record companies have begun to do: Go after the worst traders," said Mark Radcliffe, an intellectual property attorney at Gray Cary Ware & Freidenrich. Civil liabilities for wilful copyright infringement are substantial, carrying a maximum fine of $150,000 (£94,000) per violation. Individuals accused of copyright infringement as a result of file swapping activities could also face criminal charges under the No Electronic Theft Act, with a guilty verdict carrying a maximum three-year prison sentence as well as fines up to $250,000. Already, the record companies have done more than sound a warning. In April, the RIAA sued four students who operated file-search services on their school's internal networks, accusing them of promoting widespread thievery. The entertainment industry hopes the high-profile suits will scare others out of operating such systems, or sharing files at all. But the strategy is risky for an industry that's trying to lure a group of tech-savvy youngsters into paying for content through official channels, instead of taking it. For one thing, the industry's targets are potentially its most rabid customers, and suing such people could be a bad public relations move. In addition, as a practical matter, tracking down and suing vast numbers of file traders and operators of file-sharing networks is a costly and impossible task. Michael Page, an attorney at Keker and Van Nest who represented the defendants in this case, said the judgment handed down on Friday will force the record industry to develop alternative business models. "It puts pressure on the labels to take seriously that the public wants electronic distribution," Page said. "They're going to have to stop trying to figure out a way to make the Internet go away and figure out a way to use it." File-swapping crackdown coming?
Jonathan Band, a lawyer with Morrison and Foerster, said he expects to see an rise in subpoenas seeking to identify file swappers. Thus, the ruling could actually be a boon to music sites such as Listen.com's Rhapsody and an upcoming service expected next week from Apple, which are working with the record industry to mollify concerns about illegal trading. Such sites have endured protracted and painful negotiations with an industry that was reluctant to put its music online, but they may have more bargaining power as a result of Friday's ruling. Although some people will always be willing to deal with free file-swapping sites -- which are often difficult to use -- many others might be willing to pay for the services long promised by the labels and by technology companies such as Apple, especially if they're user-friendly and reasonably priced. "They all have a vested interest in making these systems work," Band said. "The decision is going to force the record industry to take a long hard look at itself in the mirror and say, 'How do we go forward?"

See the MP3/P2P News Section for the latest on everything from MP3 players to Napster and the other file-swapping services. Let the editors know what you think in the Mailroom.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

ZDNet UK Live

I think WinRT is fantastic. I just wish it was an option for people that didn't want to go through Microsoft's App Store with its attendant...

3 hours ago by 45283 on Why Windows 8 needs architectural hygiene for WOA

Nine people? £30m? Who's back pocket is that lot going in? And IF they say it is for new buildings, what about all the ones the government has...

4 hours ago by Burn-IT on Police set to launch three £30m e-crime hubs

Just to be clear, nobody knows what is in the text of ACTA, here is a photograph of the text of ACTA http://twitpic.com/8h9iju as submitted to the...

4 hours ago by ewallace on ACTA: Facts, misconceptions and questions

Unfortunately main issue is that ASUS is refusing to accept that they make some mistake on this version of asus Transformer prime. 1 - GPS sensor...

5 hours ago by fgvrg56 on Asus Eee Pad Transformer Prime Wi-Fi & GPS problems?

@Marcus A fair question. Just talked with Archos which said it was working on an announcement for next week....

6 hours ago by Ben Woods on Archos confirms G9 Ice Cream Sandwich update schedule

Any update on this, considering the claimed "first week of February"?

7 hours ago by Marcus Karlsson via Facebook on Archos confirms G9 Ice Cream Sandwich update schedule

Bill Goodrich : Just as al_langevin pointed out, with Windows Server 2008 there is no Services for Macintosh anymore. It's gone, not available....

16 hours ago by apexwm on Windows Server 2008 drops the ball for Mac compatibility

Replying to an old topic that I'm currently facing with my CEO (who is on a Mac). Our servers are primarily Windows Servers, office is about...

22 hours ago by txtrainguy on Windows Server 2008 drops the ball for Mac compatibility

Sure, that makes perfect sense. Pay wrong-doers money and thank them for breaching your security and pointing out your flaws, that would surely...

23 hours ago by k0tcs3 on US indicts Romanian over NASA climate change hack

I think he's referring specifically to Android apps, as Apple do regulate their App Store, but Google seem to let any old crap onto the Android store!

23 hours ago by Random_Error on RIM: BlackBerry will keep 'garbage' apps out of store