Peerto Peer File Sharing

Peer to Peer File Sharing
Katherine Whelan
Copyright, Commerce and Culture
Fall 2009

Napster Inc.
1999
Shawn Fanning
Sharing Files
Centralized network
15,000 users in first week

RIAA vs. Napster Inc.
Free trade of copyrighted material
Recording Industry Association of America
Assisting in illegal file transfers
2.79 Billion Violations
ZeroTolerence

Artists Speak Out…
Dr. Dreand Metallica against P2P
“Common Theives”
Limp Bizkit supporting P2P
Napster sponsoring LB’s tour
“dr.dre said-”

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 Sales
Positive
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

Controversy
The 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

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
Future Business Model

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>.
"Dangers of file sharing programs such as Limewire |." UNC-Chapel Hill Help and Support. 30 Mar. 2009. Web. 13 Dec. 2009. <http://help.unc.edu/6428>.
"Economy Profits From File-Sharing, Report Concludes | TorrentFreak." TorrentFreak | Torrent News, Torrent Sites and the latest Scoops. 19 Jan. 2009. Web. 12 Dec. 2009. <http://torrentfreak.com/economy-profits-from-file-sharing-report-concludes-090119/>.
"File Sharing: Pros and Cons for Independent Artists - ArtistshouseMusic." Artists House Music: A learning resource for music and the music business. Web. 14 Dec. 2009. <http://www.artistshousemusic.org/videos/file+sharing+pros+and+cons+for+independent+artists>.
Good Copy, Bad Copy. Web. 12 Dec. 2009. <http://www.goodcopybadcopy.net/>.
Harvey, Fiona. "Employers Need to Keep Their Eyes and Ears Open." ProQuest. Financial Times Ltd., 13 Apr. 2004. Web. 12 Dec. 2009. <http://proquest.umi.com/pqdweb?did=617967551&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&>.
Healy, Jon. "An opportunity missed to apply 'fair use' to file sharing | Opinion L.A. | Los Angeles Times." Opinion L.A. | Joe Lieberman, Medicare expansion and healthcare reform | Los Angeles Times. LA Times, 7 Dec. 2009. Web. 12 Dec. 2009. <http://opinion.latimes.com/opinionla/2009/12/an-opportunity-missed-to-apply-fair-use-to-file-sharing.html>.
Helprin, Mark. “A Great Idea Lives Forever. Shouldn’t Its Copyright?.” New York Times 20May 2007. Web. 8 Nov 2009.
<http://www.nytimes.com/2007/05/20/opinion/20helprin.html?_r=1>.
Henderson, Mark. "IT for UM." Benefits and Consequences to Peer-to-Peer File Sharing Spring (2004). Web. 12 Dec. 2009. <http://www.oit.umd.edu/ITforUM/2004/Spring/Marks/CIOsMessage.pdf>.
"Kazaa Definition from PC Magazine Encyclopedia." Technology Product Reviews, News, Prices & Downloads | PCMag.com | PC Magazine. Web. 13 Dec. 2009. <http://www.pcmag.com/encyclopedia_term/0,2542,t=Kazaa&i=45734,00.asp>.
Lessig, Lawrence. Free Culture. New York: Penguin Press, 2004.
Lethem, Jonathan. “The Ecstasy of Influence: A Plagiarism.” Harpers Magazine Feb. 2007: Web. 8 Nov 2009.
<http://www.harpers.org/archive/2007/02/0081387>.
Litman, Jessica. "Exclusive Right to Read." U-M Personal World Wide Web Server. Web. 12 Dec. 2009. <http://www-personal.umich.edu/~jdlitman/papers/read.htm>.
Mennecke, Thomas. "Slyck News - Grokster Launches Fear Campaign." Slyck.com - File Sharing, Digital Media and Tech News. 2 Jan. 2006. Web. 12 Dec. 2009. <http://www.slyck.com/story1047_Grokster_Launches_Fear_Campaign>.
Moody, Glyn. "Why Creativity needs Shorter Copyright Terms." Web log post. 9 Oct. 2009. Web. 12 Dec. 2009. <http://opendotdotdot.blogspot.com/2009/10/why-creativity-needs-shorter-copyright.html>.
MusicUnited.org. Web. 12 Dec. 2009. <http://www.musicunited.org/>.
Patry, William. Copyright Law and Practice. Bureau of National Affairs Inc., 2000
Riedel, Sarah. "A Brief History of Filesharing: From Napster to Legal Music Downloads -." Associated Content - associatedcontent.com. 24 Feb. 2006. Web. 12 Dec. 2009. <http://www.associatedcontent.com/article/20644/a_brief_history_of_filesharing_from.html?cat=15>.
Silverthorne, Sean. "Music Downloads: Piratesor Customers? HBS Working Knowledge." HBS Working Knowledge - Faculty Research at Harvard Business School. 21 June 2004. Web. 13 Dec. 2009. <http://hbswk.hbs.edu/item/4206.html>.
Smith, Seagrumn. "FROM NAPSTER TO KAZAA: THE BATTLE OVER PEER-TO-PEER FILESHARING GOES INTERNATIONAL." Duke University School of Law. 28 Mar. 2003. Web. 12 Dec. 2009. <http://www.law.duke.edu/journals/dltr/articles/2003dltr0008.html>.
Tehranian, John. “INFRINGEMENT NATION: COPYRIGHT REFORM AND THE LAW/NORM GAP.” Web. 7 Nov 2009.
<http://www.epubs.utah.edu/index.php/ulr/article/view/7/11>.
United States. Congress. Web. 14 Dec. 2009. <http://www.copyright.gov/fls/fl102.html>.

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Peerto Peer File Sharing

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