Frequently Asked Questions About Illegal File Sharing

Is illegal file sharing really such a problem?

For the past four years, sales and shipments of recorded music have been plummeting—and the downward trend shows no sign of abating. (Unit shipments have fallen 26%, from 1.16 billion units in 1999 to 860 million units last year, while revenues are off by 14%, from $14.6 billion in 1999 to $12.6 billion last year.). At the same time, sales of blank CD-R disks (the kind you copy music onto) have been soaring, and that dovetailed with the widespread use of file-sharing. So, yes, it really is a problem.

Who says that sharing music through peer-to-peer networks is illegal?

Federal law and a string of court decisions. Federal copyright statutes (specifically, Sections 501 and 506 of Title 17 of the United States Code) and the “No Electronic Theft” (NET) Act provide penalties for the unauthorized reproduction, distribution, rental or digital transmission of copyrighted sound recordings. Moreover, an unbroken series of court decisions—most recently, in Metro-Goldwyn-Mayer Studios, Inc., et al. v. Grokster, Ltd., et al., and in RIAA v. Verizon Internet Services Inc.—has affirmed that “sharing” copyrighted music files over peer-to-peer networks without the copyright holder’s permission constitutes “direct infringement.”

Didn’t the courts just rule that peer-to-peer networks are perfectly legal?

In the Grokster case, a district court did rule that the Grokster and StreamCast networks couldn’t necessarily be held liable for the illegal activities of their users. That ruling is now being considered by a Court of Appeals. In any case, the court also made it abundantly clear that whether or not a network itself can be held responsible, the users of that network can clearly be guilty of copyright infringement.

Aren’t most downloaders merely sampling music that they later wind up buying?

If this were true, music sales would be soaring, given the astronomical increases in peer-to-peer file sharing. Music consumption has never been higher, but unfortunately, an increasing segment of the population is stealing instead of paying for it.

Isn’t the real problem that consumers don’t like the music you’re putting out?

If people don’t like today’s music, why are they illegally downloading literally billions of new songs each month?

Wouldn’t people buy more CDs if they didn’t cost so much?

If you’re going to compare the price of CDs to that of stolen music—which is free—of course they’re going to seem expensive. But if you take inflation into account, music CDs are actually cheaper today than they were 20 years ago. (In 1983, when CDs were first introduced, the average suggested list price was $21.50. By 2000, it had dropped to $14.02, a decrease of nearly 35%. Over the same period, consumer prices as a whole rose nearly 73%.)

Don’t people have a right to make copies of their CDs?

It depends on the circumstances. Certainly, consumers may be able to make a limited number of copies for their own personal use. But no one has the right to offer to distribute copyrighted music to millions of people through online peer-to-peer networks without the copyright holder’s permission.

What gives you the right to go snooping around in people’s hard drives?

We’re not snooping around in anyone’s hard drive. Our evidence-collecting process involves nothing more than reviewing and downloading files that members of peer-to-peer networks choose to make available to all the other users on their networks. As the court noted in the Verizon ruling, “If an individual subscriber opens his computer to permit others, through peer-to-peer file sharing, to download materials from that computer, it is hard to understand just what privacy expectation he or she has after essentially opening the computer to the world.”

Why should I pay for music from an authorized site when I can download it for free from a peer-to-peer network?

Why should you pay for a CD at a record store when you can get it for free simply by slipping it into your pocket and heading out the door? Unauthorized downloading is just as illegal as shoplifting, and it is every bit as wrong. Not only does it rob recording artists and songwriters of their livelihoods—and threaten the jobs of tens of thousands of less celebrated people in the music industry, from engineers and technicians to warehouse workers and record store clerks—it also undermines the future of music by depriving the industry of the resources it needs to find and develop new talent. What’s more, when you download from an authorized site, you can be sure of getting a complete recording of the highest quality (as opposed to the hit-or-miss results you get from P2P networks).

What sense does it make for the music industry to sue its own customers?

The same question can be asked of retailers who go after shoplifters. And retailers do take action against shoplifters because they know the problem could get a whole lot worse if they didn’t. The cable and satellite industries have likewise take action against individuals who steal their services. Remember, this is not a victimless crime. Thousands of record company employees have been laid off, numerous record stores are closing throughout the country and due to declining sales, record companies do not have the investment to make in new artists.

How do we gather evidence?

To begin with, our evidence-gathering process (like all our other anti-piracy techniques) is completely legal and involves searching only for files that are readily available to every other member of the public.

Here’s how it works: When you log onto a peer-to-peer network, your P2P software has a default setting that automatically informs the network of your user name and the names and sizes of the files on your hard drive that are available for copying.

Because all this information is publicly available to anyone on the network, it’s relatively easy to look for—and find—users who are offering to “share” copyrighted music files. The networks could not work if this were not the case. Given the huge number of P2P users (there are an estimated five million of them online at any given time), we use software to search the network for infringing files, similar to the way other users search the network.

When we come across a user who is distributing copyrighted music files, we download copyrighted music files (of our member companies) the user is offering, as well as document the date and time that we downloaded those files.

Additional information that is publicly available from these systems allows us to identify the user’s Internet Service Provider (ISP). After manually reviewing the information gathered by the software, we can then decide whether it justifies serving the ISP with a subpoena requesting the name and address of the individual whose account was being used to distribute copyrighted music. Under the Digital Millennium Copyright Act, ISPs are required to provide copyright holders with such information when there is a good-faith reason to believe their copyrights are being infringed.

Is it possible to get good music online legally?

Yes! The music industry has responded to consumer demand by making its music available to a wide range of authorized online subscription, streaming and download services that make it easier than ever for fans to get music legally on the Internet. In the U.S. market alone, there are dozens of great legitimate online services that offer a variety of choices to enjoy and purchase online music:

www.apple.com/music, www.audiocandy.com, www.bestbuy.com, www.bet.com, www.catsmusic.com, www.CircuitCity.com, www.collegeconcerts.com, www.cornercd.com, www.musicstack.com, www.dothehole.com, www.earwax.com, www.efetus.com, www.emusic.com, www.exitosmusical.com, www.facethemusic.com, www.fullaudio.com, www.FYE.com, www.galleryofsound.com, www.independentrecord.com, www.instavid.com, www.latinoise.com, www.liquid.com, www.burnitfirst.com, www.listen.com, www.millenniummusic.com, www.miramag.com, www.mp3.com, www.musicmatch.com, www.musicmillennium.com, www.musicnet.com, www.musicrebellion.com, www.netscape.com/music, www.newworldrecord.com, www.phillysoulclassics.com, www.pressplay.com, www.qhut.com, www.rasputinmusic.com, www.real.com/realone/rhapsody, www.recordandtapetraders.com, www.rollingstone.com, www.samgoody.com, www.spinner.com, www.streamwaves.com, www.tophitsmusic.com, www.towerrecords.com, www.windowsmedia.com

What is the DMCA?

The Digital Millennium Copyright Act (DMCA) was passed by Congress in 1998 to bring copyright law into the digital age. Among other things, it protects Internet Service Providers (ISPs) from being held legally responsible for any acts of copyright infringement their customers may commit. In exchange for this protection, the DMCA obligates ISPs to provide copyright holders with the names and addresses of customers who are suspected of committing copyright violations.

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The Recording Industry Association of America (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies. Its members are the music labels that comprise the most vibrant record industry in the world. RIAA® members create, manufacture and/or distribute approximately 85% of all legitimate recorded music produced and sold in the United States.

In support of this mission, the RIAA works to protect the intellectual property and First Amendment rights of artists and music labels; conduct consumer, industry and technical research; and monitor and review state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi- Platinum™ and Diamond sales awards as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales.