Peer to peer (P2P) file sharing began with Napster in 1999, allowing users to share files through a centralized network. This was challenged by the RIAA for enabling sharing of copyrighted music. Later systems like Kazaa used decentralized networks, reducing liability. While P2P was seen as negatively impacting music sales, others argued it encouraged concert tickets and that copyright law was restricting creativity and innovation. Debate continues over balancing copyright holders' rights with open culture and sharing.

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

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

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

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

5. 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.

6. Sharing Models - Napster

7. Sharing Models – Kazaa and Grokster

9. Today it encourages concert tickets and merchandise purchases

11. 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

12. 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

13. 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

14. Inflicting Fear

15. 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

16. 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

17. New Online Models

18. 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

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