Peer to Peer File SharingKatherine WhelanCopyright, Commerce and CultureFall 2009

Napster Inc.

•1999•Shawn Fanning

•Sharing Files▫Centralized

network•15,000 users in first week

RIAA vs. Napster Inc.

Recording Industry Association of America

Free trade of copyrighted material

Assisting in illegal file transfers

2.79 Billion Violations

Zero Tolerence

Artists Speak Out…

“dr.dre said-”

•Dr. Dre and Metallica against P2P▫“Common

Theives”•Limp Bizkit supporting P2P▫Napster

sponsoring LB’s tour

Kazaa and Grokster•Early 2000s•Used new model

▫No centralized network▫Reduced Liability

•Overseas▫Try to avoid U.S.

Copyright Laws•Grokster shut down in

2005 for encouraging the sharing of illegal files.

Sharing Models - Napster

Sharing Models – Kazaa and Grokster

P2P Technology and Record SalesPositive Negative

• Top Artist of 2008 only sold 3 million records in comparison to 30 million in 1998

• $12.5 Billion in losses• Loss of Jobs

• Before iPod it encouraged CD purchases

• Today it encourages concert tickets and merchandise purchases

• Gives the listeners the right to choose which songs are “worthy”

Positive Affects

•Remixing▫Garl Talk▫Mashups

•Parodies▫Weird Al

•Sharing other files besides music

“…allows them to ignore all the other extraordinarily creative and productive uses of this technology, which the “war on piracy” will also make impossible.”

– Lawrence Lessig

ControversyThe Entertainment Industry and Copyright Law Culture and Creativity

• P2P infringes owners’ rights

• Loss of profit• Without profit and

protection creativity will decline▫ No Motivation to

continue

• Copyright law is delaying creativity

• Copyright law is controlling the way artists/distributors get paid

• Paying for songs would deter innovators

• We will never see the full potential of computing

Changes in what Copyright Protects

Past Present

• 18th Century• Physical Copy of Books• To Promote thought,

expansion of culture and creativity

• “usemonopoly”▫ Owner completely

controls work has almost unlimited rights Fair use works case by

case and is very unclear▫ This monopoly is now

restricting culture

Inflicting Fear• RIAA going after the

individual• Students, Parents and

Employers being notified of P2P risks

• Spring of 2003 four college students paid between $12,500 to $17,000 each in settlements

• Parents were at risk for what their kids were sharing

• Employers at risk for what their employees were sharing

Inflicting Fear

Joel Tenenbaum Lawsuit• August of 2009• Admitted to downloading

and Sharing 30 songs through Kazaa

• Settled at 22,500 per song▫ That’s a grand total of

675,000 30 songs for free or a

nice house…• Argued Fair Use

▫ Private enjoyment Judge explained it was

too broad

Dutch Government Advocates P2P•January 2009•Report found P2P

technology is now a “good-thing.”

•those who download are more likely to attend concerts, and purchase CDs than those who don’t

New Online Models

Future Business Model• EFF has proposed a

potential business model

• Keep the “all-you-can-eat” model

• Pay small monthly fee ($5-$10)

• Free from copyright infringement risks

• Money distributed to artists depending on popularity

Works Consulted• Barlow, John. “The Economy of Ideas.” 1993-2003. Web. 7 Nov 2009.

• <http://www.wired.com/wired/archive/2.03/economy.ideas_pr.html>.

• Bauwens, Michel. "P2P and Human Evolution: Placing Peer to Peer Theory in an Integral Framework, Michel Bauwens." Integral World : Exploring Theories of Everything. Web. 12 Dec. 2009. <http://www.integralworld.net/bauwens2.html>.

• Coronado, Kristin. "Napster Ordered to Log Off." ProQuest. Richmond Newspapers, 28 July 2000. Web. 12 Dec. 2009. <http://proquest.umi.com/pqdweb?did=57348747&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&&cfc=1>.

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• Good Copy, Bad Copy. Web. 12 Dec. 2009. <http://www.goodcopybadcopy.net/>.

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• Lessig, Lawrence. Free Culture. New York: Penguin Press, 2004.

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