The Evolution of Online Piracy o by pengxiang


									The Evolution of Online Piracy
           of Music

         Alexis Nadolny
          George Jong
         Melinda Berger

   What technologies enable or inhibit music
   What problems or issues have developed
    with file-sharing?
   What is the legal viewpoint?
   What will the future hold?
             What are MP3s?

   Highly compressed music files that make it
    easier to download and transfer music
    from one computer to another
   In comparison to other formats, they are
    more manageable due to their size and
    have an increased clarity thus making
    them a better quality
MP3 Player (WinAmp)
   Napster is a software program which
    allows its users to locate and share MP3
   It is now being regarded as the company
    that precipitated the digital download
   It was created in 1999 by Sean Fanning, a
    freshman at Northeastern University
Napster Screen
   Napster technology
    incorporates a
    centralized or server-
    based Peer-to-Peer
    (P2P) network
   Servers store data and
    applications that PCs
    can access
   There is a central list
    of information that is
    accessed by all the
    users of the system
   The locations of all the music files of the
    users that are currently on-line are kept
    on the central network, but the files
    themselves stay on the users’ computers
    until another computer asks for it
   Under the Napster program there is no
    process for checking to see if the
    materials distributed are protected by
    copyright, nor does the system recognize
    the true identity of the users involved in
    the transaction
          Intellectual Property

   Consists of patents, copyrights,
    trademarks, and trade secrets, which are
    legally protected rights
   Copyright prohibits the unauthorized
    duplication, performance, or distribution of
    creative works
               Recording Industry
              Association of America
   Mission: to foster a business and legal
    environment that supports and promotes
    its members creative and financial vitality
   Members: artists and record companies
   RIAA members create, manufacture, and
    distribute approximately 90% of all
    legitimate sound recordings produced and
    sold in the U.S.
             Financial Losses

   Annual revenue for recorded music in the
    United States is $14 billion; worldwide it's
    $38 billion
   The RIAA claims that $5 billion in annual
    revenue is lost to piracy, only accounting
    for what is passed around on compact disc
    or tape
    No one knows yet what MP3s and file
    sharing will cost in lost revenue
    A&M Records, Inc, A Corporation;
       Et Al., vs. Napster, Inc., A
   Prosecution: there are no royalties being
    paid to anyone; Napster should have to
    obtain permission before downloads occur
       90% of the 20 million downloads that occur
        everyday on Napster are copyrighted
       “…the Napster service and system is
        piggybacking on our clients’ investment in the
        manufacture and creation of those recordings,
        the promotional costs, the advertising, all of
        which go into making a Napster user want to
        download our recordings.”
   Defense:
       It is impossible to sort by word
       Napster has complied with the DMCA
       We have attempted to inhibit illegal
       MP3s are a development of Sony, one of the
        record companies, and that new technology
        has been developed and will be used on
        future compact discs to prevent programs
        such as Napster to allow file sharing
       you can not destroy the MP3s that already
        exist and those that are out there now, will
        always be free
   The Honorable Marilyn Hall Patel decided
    against Napster, Inc. and in favor of A&M
    Records, Inc.
   The judge determined that Napster was
    “…facilitating something that involves the
    infringing upon plaintiffs’ copyrighted
   Napster appealed and was denied.
   A new liability test was developed
           Other Legal Issues
   Metallica filed suit against Napster and 3
    universities for racketeering
   Dr. Dre gave Napster a deadline to
    remove his songs from the program
   Both Metallica and Dr. Dre gave Napster
    lists of names of people who had illegally
    downloaded their music from the
    program. They demanded these people
    be removed from the service and directly
    threatened their fans with litigation
           Napster’s Successors
   Newer technologies
    such as Gnutella and
    FastTrack are
    networks where each
    peer connects directly
    to other peers without
    being directed by a
   To use these networks freely,
    software such as BearShare and
    LimeWire can be downloaded for the
    Gnutella network and Morpheus and
    KaZaA can be likewise downloaded
    for the FastTrack network
             More Litigation

   RIAA and MPAA are prosecuting MusicCity,
    KaZaA and Grokster on the grounds of
    copyright infringement
   Scour has been shut down
   DeCSS ruling was overturned
                Legal Future

   Copyright, fair use, antitrust, privacy
   Broacasters will probably be involved in
    law suits
   Restrictions and financial charges will be
            Technological Future

   Digital Rights Management (DRM)
       Microsoft
       Hackers
   Secure Digital Music Initiative (SDMI)
       Watermarks
       Cannot play existing MP3s

   New technologies will be developed to
    enable piracy and also to inhibit it
   New litigation will take place and
    precedents will be set
   Music piracy will continue as long as the
    technology exists

To top