P2P NETWORKS ROCK, Music Industry Rolls.

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  • คุณรู้จัก Kazaa หรือไม่ (เช็คอายุ)?Kazaa คืออะไร
  • Kazaa มีหน้าตาดังนี้ (คุ้นกันบ้างมั้ย)ขึ้น ว่า kazaa คืออะไร
  • 2001-Nov : to prevent its users from violating copyrights or else pay a heavy fine.In late March 2002, the Amsterdam Appeal Court reversed the previous judgement on Kazaa, proclaiming the peer-to-peer network legal and not liable for copyright infringement (Libbenga, 2003).On September 5, 2005, the Australian Federal court ruled that although the owners, Sharman Networks, had not itself breached copyright by sharing music but it had encouraged millions of Kazaa users throughout the world to do so (Deare, 2005). The judge gave Kazaa owners two months to modify the software with appropriate technology such as keyword filters to prevent sharing of copyrighted material (a ruling only enforceable in Australia). Sharman and its related businesses, Altnet, and Brilliant Digital Entertainment were also ordered to pay 90% of the millions of dollars in legal fees incurred by the music industry entities that sued them.In 2003, RIAA filed its first round of lawsuit against 261 individuals who had each distributed an average of more than 1,000 copyrighted songs on Kazaa and other popular peer-to-peer services such as Grokster (Borland, 2003). In most of these cases, a $3,000 average monetary damage was deemed sufficient.In February 2004, the Australian Recording Industry Association (ARIA) took its own action and issued proceedings against Sharman in the Australian Federal court (Montgomery and Warne, 2005). And on February 6, the court gave orders for investigators to raid the offices of Sharman Networks and the homes of two company’s executives, searching for evidence linking the company to copyright infringement. The evidences were consolidated and the trial began on November 9, 2004.
  • 2001-Nov : to prevent its users from violating copyrights or else pay a heavy fine.In late March 2002, the Amsterdam Appeal Court reversed the previous judgement on Kazaa, proclaiming the peer-to-peer network legal and not liable for copyright infringement (Libbenga, 2003).On September 5, 2005, the Australian Federal court ruled that although the owners, Sharman Networks, had not itself breached copyright by sharing music but it had encouraged millions of Kazaa users throughout the world to do so (Deare, 2005). The judge gave Kazaa owners two months to modify the software with appropriate technology such as keyword filters to prevent sharing of copyrighted material (a ruling only enforceable in Australia). Sharman and its related businesses, Altnet, and Brilliant Digital Entertainment were also ordered to pay 90% of the millions of dollars in legal fees incurred by the music industry entities that sued them.In 2003, RIAA filed its first round of lawsuit against 261 individuals who had each distributed an average of more than 1,000 copyrighted songs on Kazaa and other popular peer-to-peer services such as Grokster (Borland, 2003). In most of these cases, a $3,000 average monetary damage was deemed sufficient.In February 2004, the Australian Recording Industry Association (ARIA) took its own action and issued proceedings against Sharman in the Australian Federal court (Montgomery and Warne, 2005). And on February 6, the court gave orders for investigators to raid the offices of Sharman Networks and the homes of two company’s executives, searching for evidence linking the company to copyright infringement. The evidences were consolidated and the trial began on November 9, 2004.
  • P2P NETWORKS ROCK, Music Industry Rolls.

    1. 1. P2P NETWORKS ROCK,<br />Music Industry Rolls.<br />
    2. 2. Agenda<br />P2P Definition<br />Evolution of P2P<br />Case Study Question and Answer<br />
    3. 3. Agenda<br />P2P Definition<br />Evolution of P2P<br />Case Study Question and Answer<br />
    4. 4. History of file sharing<br />Single Server<br />Upload file to server<br />Server overload and limitation of Bandwidth<br />Whole file only<br />Separate not work<br />Multiple Server<br />
    5. 5. History of file sharing<br />P2P<br />File Directly send from client to client<br />Less load on Server<br />No bottleneck<br />
    6. 6. Agenda<br />P2P Definition<br />Evolution of P2P<br />Napster<br />KaZaa<br />Bittorrent<br />Case Study Question and Answer<br />
    7. 7. Napster<br />The first world champion of <br />free music downloads<br />
    8. 8. History<br />Founded in 1999 by<br />at age of 19 !!!<br />Specialized exclusively in music in the form of MP3 files<br />Presented a friendly user-interface<br />Shawn <br />Fanning <br />Sean <br />Parker<br />
    9. 9. History<br />In February 2001 the program hit global use by 26.4 million users<br />
    10. 10. How the old Napster worked?<br />Friendly user-interface and easy to use just<br />Opened Napster Utilities<br />Search for the song you wanted<br />Napster Index Server provided the list of the Napster client which had that song <br />Click “Download”<br />
    11. 11. How the old Napster worked?<br />
    12. 12. Legal Challenges<br />New songs leaked in Napster network before they were released<br />Filing a lawsuit by<br />Metallica<br />Dr. Dre<br />Madonna<br />Etc<br />A&M Records and others sued Napster in 2000<br />
    13. 13. Legal Challenges<br />Napster lost the case<br />Could continue its business with non-infringing uses<br />Shutdown its service in July 2001<br />Bankrupt in 2002<br />
    14. 14. Here and Now<br />Acquired at bankruptcy auction by Roxio, Inc.<br />Purchased by Best Buy, Inc. at $121 million<br />Business Model Changed<br />Get Free Stream songs up to 3 times each<br />After that (if you like that song) you have to <br />Purchase the track <br /> Or<br />Subscribe with Napster<br />$5 Gets You 5 MP3s and Unlimited On-Demand Streaming Music<br />
    15. 15. Here and Now<br />
    16. 16. What is Kazaa?<br />
    17. 17. Kazaa is a peer-to-peer file sharing application using the FastTrack protocol and owned by Sharman Networks.<br />
    18. 18. How was it used?<br />Kazaa is commonly used to exchange files<br />MP3s<br />Videos<br />Applications<br />Other documents<br />
    19. 19. Difference from Napster<br />There is no single list from single server.<br />It used Fast Track Protocol.<br />
    20. 20. Against the law suite<br />RIAA filed lawsuit against 261 individuals<br />Court Order<br />To filter<br />Copyright <br />content<br />Napsterwas ordered <br />to shutdown<br />Court reversean earlier <br />judgment<br />2001-Jun<br />2002-Mar<br />2003-Feb<br />2005-Sep<br />2001-Mar<br />2001-Nov<br />2002-OCt<br />2004-Feb<br />Kazaawas founded<br />Consumer Empowerment <br />was sued<br />by Dutch<br />Sharmanwas suein LA.<br />Sharman<br />was used<br />in Australia<br />
    21. 21. Against the law suite<br />
    22. 22.
    23. 23. Bittorrent<br />Protocol<br />Developed by Bram Hohen (2001) by Python<br />it has been estimated that it accounts for approximately 27-55% of all Internet traffic (depending on geographical location) as of February 2009<br />
    24. 24. Bittorrent Concept<br />Solve Problem about inequality speed of upload and download & Server overloaded<br />File Separation, Parallel Download.<br />Idea from “MojoNation” : split a single file into pieces<br />Motto : Give and ye shall received<br />Seeder : Original Source, Upload Only.<br />Leecher (Peer) : Sender(Upload) and Receiver(Download)<br />
    25. 25.
    26. 26.
    27. 27. Bittorrent Conponent<br />Client : Tracker Client Program<br />Server : Collect Torrent File & Tracker<br />Close System<br />Member/ Ratio (Upload / Download)<br />Open System<br />Torrent File<br />
    28. 28. Advantage / Limitation<br />Advantage<br />Higher Speed<br />Enable to transfer bigger file<br />Limitation<br />Speed depends on No. of peers<br />Problem with streaming file<br />
    29. 29. Why They can’t sue Bittorrent?<br />if it can be used for legal purposes. BitTorrent passes that test, says Fred von Lohmann, a lawyer at the Electronic Frontier Foundation, because Linux groups and videogame companies regularly use it to shuttle software around the Net. &quot;That puts Bram in the same situation as Xerox and its photocopiers.”<br />
    30. 30. Agenda<br /><ul><li>P2P Definition
    31. 31. Evolution of P2P
    32. 32. Case Study Question and Answer</li></li></ul><li>Case Summary: P2P Networks Rock<br />Court battle: MGM Studios, Inc. v. Grokster, Ltd.<br />June 2005: The U.S. Supreme Court unanimously concurred that Internet file-sharing services such as Grokster, StreamCast, BitTorrent, and Kazaa could be liable for inducing copyright infringement.<br />Business model: Steal the music, gather a huge audience, and monetize the audience by advertising<br />Legal victory!!! but do not solve problems facing the music industry…WHY?? <br />
    33. 33. Case Summary: P2P Networks Rock<br /><ul><li>Downloading legal music</li></ul>Business growth 50% per year since 2006<br />Not strong enough to compensate for the plunging CD sales<br />Not downloading entire albums<br /><ul><li>Downloading illegal music: </li></ul>Using file-sharing P2P networks<br />Younger people<br />Falling CD sales revenues<br />
    34. 34. Question from case<br />
    35. 35. Question 1<br />How can P2P file-sharing networks make money if they do not sell music?<br />Direct<br />Sell movie online (e.g. www.cinemanow.com)<br />Indirect<br />Provide the download service for online game and earn from Air Time<br />Sell advertising on the sites<br />Distributed Softwarefor advertisement to peer PC directly<br />
    36. 36. Question 1<br />How can P2P file-sharing networks make money if they do not sell music?<br />Indirect (cont.)<br />Member fee for Bittorrent website.<br />Bittorrent Broadcaster.<br />Cohen get Donation by followers.<br />Another Service like Colo<br />
    37. 37. Question 2<br />Into which category or categories of e-commerce do P2P file-sharing networks fall?<br />Anything of file that the vendors would like to sell such as;<br />Books<br />CDs/DVDs<br />Application<br />PC Game<br />
    38. 38. Question 3<br />What social issue are raised by P2P file-sharing protocols and programs such as BitTorrent? <br />Pornographic Film/ Movie<br />Piracy of Intellectual property<br />Privacy/Cultural<br />Change in Consumer Mind-Set & Behavior<br />Change in business model/ business strategy<br />e.g. U2: Free music and revenue comes from concert and others.<br />
    39. 39. Question 3<br />Is the record industry justified in attempting to shut them down? Why or why not?<br />Yes: <br />P2P file-sharing protocols/programs lead to loss in revenue. <br />For long term effect: Investors might not be interestedin this business.<br />A disaster for artists (loss of income), consumers (loss of platforms the music industry COULD develop), and society (loss of jobs, artists).<br />the proposed policy to disconnect file-sharers from the Internet; however, this couldn’t be done since the technology itself is legal <br />
    40. 40. Question 3<br /><ul><li>On the other hand, creativity and quality of work might be improved to handle with the loss of income crisis</li></li></ul><li>Question 4<br />Will the supreme court’s decision inhibit the development of P2P technology or the internet itself, as proponents of P2P services have claimed?<br />Not prohibited<br /><ul><li>The concept behind file-sharing is totallylegal
    41. 41. But a the same time sharing copyrighted material is illegal </li></ul>- Sharing file without the permission of the copyright holder is against the law<br />
    42. 42. Question 5<br />Why do people older than 21 tend to use legitimate downloading sites whereas younger people tend to use illegal sites?<br />Income/ Credit cards issue<br />Ethics/ Legal issue<br />Kid/Teen Convenience Lifestyle (Youtube and MP3 file sharing)<br />
    43. 43. Question 6<br />What difference would it make if the existing music labels disappeared for lack of revenue?<br />No big company – Deficit/ bankruptcy<br />Business will change business process.<br />Cross functional business<br />Targeting revenue from Brand Identity, Souvenir, Performance ticket rather than selling the CDs <br />Long tail artist e.g. Increase in Indy artists<br />
    44. 44. Question 6<br />What legitimate function do the music labels perform in the creation and distribution of original music?<br />Sample music/Teaser w/o protection as a part of promotion tool and creating a “buzz” with no financial cost<br />Targeting revenue from Brand Identity, Souvenir, Performance ticket rather than selling the CDs e.g. U2: Free music and revenue comes from concert and others.<br />
    45. 45. The End<br />See you again at Final Project<br />

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