The Evolution of Online Piracy of Music

7/30/2019 The Evolution of Online Piracy of Music

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The Evolution of Online Piracy

of Music

Alexis Nadolny

George JongMelinda Berger


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Questions

What technologies enable or inhibit musicpiracy?

What problems or issues have developedwith file-sharing?

What is the legal viewpoint?

What will the future hold?


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What are MP3s?

Highly compressed music files that make iteasier 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 makingthem a better quality


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MP3 Player (WinAmp)


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Napster Screen


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Napster technologyincorporates a

centralized or server-based Peer-to-Peer(P2P) network

Servers store data and

applications that PCscan access

There is a central listof information that isaccessed by all theusers of the system


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The locations of all the music files of theusers that are currently on-line are kept

on the central network, but the filesthemselves stay on the users computersuntil another computer asks for it

Under the Napster program there is noprocess for checking to see if thematerials distributed are protected by

copyright, nor does the system recognizethe true identity of the users involved inthe transaction


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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


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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 alllegitimate sound recordings produced andsold in the U.S.


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Financial Losses

Annual revenue for recorded music in theUnited 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 discor tape

No one knows yet what MP3s and file

sharing will cost in lost revenue


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A&M Records, Inc, A Corporation;

Et Al., vs. Napster, Inc., A

Corporation Prosecution: there are no royalties being

paid to anyone; Napster should have toobtain permission before downloads occur 90% of the 20 million downloads that occur

everyday on Napster are copyrightedthe Napster service and system is

piggybacking on our clients investment in the

manufacture and creation of those recordings,the promotional costs, the advertising, all ofwhich go into making a Napster user want todownload our recordings.


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Defense: It is impossible to sort by word

Napster has complied with the DMCA

We have attempted to inhibit illegaldownloads

MP3s are a development of Sony, one of therecord companies, and that new technologyhas been developed and will be used onfuture compact discs to prevent programssuch as Napster to allow file sharing

you can not destroy the MP3s that alreadyexist and those that are out there now, willalways be free


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The Honorable Marilyn Hall Patel decided

against Napster, Inc. and in favor of A&MRecords, Inc.

The judge determined that Napster wasfacilitating something that involves theinfringing upon plaintiffs copyrightedworks...

Napster appealed and was denied.

A new liability test was developed


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Other Legal Issues

Metallica filed suit against Napster and 3universities 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 theprogram. They demanded these peoplebe removed from the service and directlythreatened their fans with litigation


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Napsters Successors

Newer technologiessuch as Gnutella and

FastTrack aredecentralizednetworks where eachpeer connects directly

to other peers withoutbeing directed by aserver


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To use these networks freely,software such as BearShare andLimeWire can be downloaded for the

Gnutella network and Morpheus andKaZaA can be likewise downloadedfor the FastTrack network


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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


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Legal Future

Copyright, fair use, antitrust, privacy

Broacasters will probably be involved in

law suits

Restrictions and financial charges will bedesigned


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Technological Future

Digital Rights Management (DRM)

Microsoft

Hackers

Secure Digital Music Initiative (SDMI)

Watermarks

Cannot play existing MP3s


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Conclusion

New technologies will be developed toenable piracy and also to inhibit it

New litigation will take place andprecedents will be set

Music piracy will continue as long as the

technology exists

The Evolution of Online Piracy of Music

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