liberty vs. piracy piracy 2 piracy 2 craig haughton craig haughton mike desimone mike desimone brian...

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Liberty vs. Piracy Liberty vs. Piracy Piracy 2 Piracy 2 Craig Haughton Craig Haughton Mike DeSimone Mike DeSimone Brian Spada Brian Spada Jason Atkinson Jason Atkinson

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Liberty vs. PiracyLiberty vs. Piracy

Piracy 2Piracy 2 Craig HaughtonCraig Haughton Mike DeSimoneMike DeSimone Brian SpadaBrian Spada Jason AtkinsonJason Atkinson

What is Piracy?What is Piracy?

When we say “Piracy” we are When we say “Piracy” we are referring to Software Piracy.referring to Software Piracy.

Covers several different activities:Covers several different activities: Illegal copying of programsIllegal copying of programs Counterfeiting softwareCounterfeiting software Distributing software Distributing software Even sharing a program with a friend. Even sharing a program with a friend.

Mp3Mp3

The music contained on a music CD The music contained on a music CD is stored in a very high resolution is stored in a very high resolution digital format.digital format.

Basically, the MP3 format is a Basically, the MP3 format is a compression of the compact disk compression of the compact disk information. Using “Perceptual information. Using “Perceptual Noise Shaping” without sacrificing Noise Shaping” without sacrificing any audio quality whatsoever.any audio quality whatsoever.

Types of NetworksTypes of Networks

Although Napster and other file Although Napster and other file sharing programs have just recently sharing programs have just recently brought peer-to-peer sharing into brought peer-to-peer sharing into the limelight, it has been around the limelight, it has been around almost as long as the Internet itself.almost as long as the Internet itself.

Initially done over a Local Area Initially done over a Local Area Network (LAN) and File Transfer Network (LAN) and File Transfer Protocol (FTP).Protocol (FTP).

Centralized vs. Centralized vs. Decentralized NetworksDecentralized Networks

CentralizedCentralized examples: Napster, Morpheusexamples: Napster, Morpheus A central server is used to connect A central server is used to connect

users to each other.users to each other. The file being transferred over a direct The file being transferred over a direct

HTTP link that the server makes HTTP link that the server makes between the two computers.between the two computers.

The file is never actually stored on the The file is never actually stored on the server.server.

Continued...Continued...

DecentralizedDecentralized example: Gnutellaexample: Gnutella No central server.No central server. Computer basically logs on and informs Computer basically logs on and informs

other computers it has logged on. other computers it has logged on. Basically a chain of computers Basically a chain of computers

networked together as opposed to all networked together as opposed to all the computers running through one the computers running through one central server. central server.

History of the Napster History of the Napster casecase

Napster gains popularity in early 1999.Napster gains popularity in early 1999. RIAA brings suit against Napster, Yale, USC, RIAA brings suit against Napster, Yale, USC,

and Indiana University for copyright and Indiana University for copyright infringement not long after.infringement not long after.

Judge initially rules in favor of RIAA and orders Judge initially rules in favor of RIAA and orders the site to be shut down. The ruling was the site to be shut down. The ruling was appealed by Napster.appealed by Napster.

9th District Court of San Francisco hears the 9th District Court of San Francisco hears the appeal and assents that Napster is promoting appeal and assents that Napster is promoting and facilitating widespread copyright and facilitating widespread copyright infringement.infringement.

Napster agrees to remove copyrighted material.Napster agrees to remove copyrighted material. The case was put on hold and remains there to The case was put on hold and remains there to

date.date.

The sides of the The sides of the argument….argument….

There are two There are two main sides:main sides:

RIAA and the RIAA and the artists they artists they representrepresent

People who People who distribute these distribute these files using Napster, files using Napster, Morpheus, etc…Morpheus, etc…

Why mp3 sharing is Why mp3 sharing is illegalillegal

Two Steps:Two Steps: Conversion to mp3 formatConversion to mp3 format Distribution over P2P networkDistribution over P2P network

Both are illegal in the US under Both are illegal in the US under current copyright lawcurrent copyright law

Copyright in the USCopyright in the US

Gives the ownerGives the owner Exclusive right to reproduce, distribute, Exclusive right to reproduce, distribute,

perform, display, or license the work perform, display, or license the work Lasts until 70 years after the author’s Lasts until 70 years after the author’s

deathdeath Does a loophole exist?Does a loophole exist?

Loophole in Copyright?Loophole in Copyright?

Section 107Section 107 ““Fair Use” clauseFair Use” clause Allows for criticism, comment, news Allows for criticism, comment, news

reporting, teaching (including multiple reporting, teaching (including multiple copies for classroom use), scholarship, copies for classroom use), scholarship, or research.or research.

Is mp3 conversion Is mp3 conversion illegal?illegal?

Unless you plan on researching the life Unless you plan on researching the life and times of Busta Rhymes, copying CDs and times of Busta Rhymes, copying CDs into mp3s is into mp3s is illegalillegal

What about the Betamax What about the Betamax case?case?

VCR’s record broadcast mediumVCR’s record broadcast medium CD’s are a purchased productCD’s are a purchased product

VCR’s make degraded analog copyVCR’s make degraded analog copy mp3 produces a near-perfect mp3 produces a near-perfect

reproductionreproduction

Courts may not use Betamax case as Courts may not use Betamax case as precedenceprecedence

Is sharing mp3s illegal?Is sharing mp3s illegal?

Even if courts rule that creating mp3’s is Even if courts rule that creating mp3’s is legal, it is still legal, it is still illegalillegal to distribute to distribute copyrighted material to the general copyrighted material to the general public.public.

Who is to blame?Who is to blame?

Is Napster responsible for its users’ Is Napster responsible for its users’ actions?actions? Is Ford responsible in an accident?Is Ford responsible in an accident?

Napster should not be held Napster should not be held responsible for the actions of its responsible for the actions of its usersusers

Does Napster have a Does Napster have a legitimate use?legitimate use?

Small artists have used Napster to gain Small artists have used Napster to gain attentionattention Majority of files on Napster were copyrightedMajority of files on Napster were copyrighted Many alternative distribution methods exist:Many alternative distribution methods exist:

WebsitesWebsites FTPFTP OthersOthers

Napster allows copyrighted works to be Napster allows copyrighted works to be distributed, searched, and centralizeddistributed, searched, and centralized

Can Napster be Can Napster be outlawed?outlawed?

Napster was shut down by court orderNapster was shut down by court order Central server allowed easy shutdownCentral server allowed easy shutdown

Next-generation P2P clients do not use a Next-generation P2P clients do not use a central servercentral server Shutting down one host still leaves others Shutting down one host still leaves others

operatingoperating May be able to limit new users from enteringMay be able to limit new users from entering

Destroying Napster may have done more Destroying Napster may have done more harm than goodharm than good

What can artists/labels What can artists/labels do?do?

Lower price of CDsLower price of CDs + increase sales volume+ increase sales volume + still make a reasonable profit+ still make a reasonable profit - most will not take risk of decreased - most will not take risk of decreased

revenuerevenue CD resistant to digital transferCD resistant to digital transfer

+ stop most media creation+ stop most media creation - may lose customers- may lose customers - discs may not work in all players- discs may not work in all players - potential warning- potential warning

What else can What else can artists/labels do?artists/labels do?

Change public opinionChange public opinion Use TV and radio ads to highlight benefits Use TV and radio ads to highlight benefits

of purchasing CD and the problems of of purchasing CD and the problems of sharing mp3ssharing mp3s

+ keeps prices stable+ keeps prices stable + no newfangled copy protection schemes+ no newfangled copy protection schemes + could also benefit other industries (like + could also benefit other industries (like

software)software) - create negative attention- create negative attention

thetruth.com adsthetruth.com ads

Why should file sharing Why should file sharing be legal?be legal?

File sharing is a new technology that File sharing is a new technology that makes listening to your favorite makes listening to your favorite artists and watching your favorite artists and watching your favorite movies more enjoyable. There are movies more enjoyable. There are many reasons why file sharing many reasons why file sharing should be legal.should be legal.

Oh no, BetaOh no, Beta !!

Sony released the first version of a Sony released the first version of a VCR in the 1970’s called the VCR in the 1970’s called the Betamax.Betamax.

Many people in Hollywood claimed Many people in Hollywood claimed the Betamax would ruin sales of the Betamax would ruin sales of movies and movie rentals.movies and movie rentals.

U.S. Supreme Court declared U.S. Supreme Court declared Betamax legal.Betamax legal.

Movie rental sales did not decline.Movie rental sales did not decline.

Audio Home Recording Audio Home Recording ActAct

In 1992, the Audio Home Recording In 1992, the Audio Home Recording Act was passed.Act was passed.

This requires all manufactures of This requires all manufactures of blank media to make royalty blank media to make royalty payments to the United States payments to the United States Copyright Office.Copyright Office.

The Copyright Office will then The Copyright Office will then distribute those royalties to the distribute those royalties to the proper people as compensation.proper people as compensation.

Losing moneyLosing money

Since the age of file sharing, record Since the age of file sharing, record companies have lost money.companies have lost money.

However, most of the reason for this However, most of the reason for this has nothing to do with file sharing.has nothing to do with file sharing.

Online piracy may just be a scapegoat Online piracy may just be a scapegoat for dropping record sales.for dropping record sales.

The most popular albums still sell just The most popular albums still sell just as well.as well.

Record companies can Record companies can actually make moneyactually make money

File sharing can actually increase File sharing can actually increase sales of many artists.sales of many artists.

People can actually preview songs People can actually preview songs they would have never heard they would have never heard otherwise, and possibly be otherwise, and possibly be introduced to a new artist whose introduced to a new artist whose record they would purchaserecord they would purchase

Harmless DownloadingHarmless Downloading

Many people own mp3’s just to Many people own mp3’s just to collect, and would never buy the collect, and would never buy the album anyway.album anyway.

Some of the pirated games are not Some of the pirated games are not made anymore or are not for sale.made anymore or are not for sale.

Record companies should adhere to Record companies should adhere to this new more convienent way of this new more convienent way of listening to movies or watching listening to movies or watching movies.movies.

Present Status of the Present Status of the Napster CaseNapster Case

As a result of the constant appeals, As a result of the constant appeals, this case is currently on hold.this case is currently on hold.

Meaning that there is no exact way Meaning that there is no exact way that the effects of this ruling can be that the effects of this ruling can be predicted. Therefore I will be making predicted. Therefore I will be making logical projections as to what could logical projections as to what could occur.occur.

Possible RulingsPossible Rulings

If Napster were to winIf Napster were to win This means that the service they provided This means that the service they provided

does not constitute or facilitate copyright does not constitute or facilitate copyright infringement.infringement.

If Napster LosesIf Napster Loses This means that saying that if you share a This means that saying that if you share a

file that is copyrighted by the music file that is copyrighted by the music industry and you do not pay royalties to industry and you do not pay royalties to them, you and the service will be held liable them, you and the service will be held liable and charge with copyright infringementand charge with copyright infringement

Effects of the Napster Effects of the Napster RulingRuling

Whom it will effect?Whom it will effect? File Sharing and File Sharing CommunitiesFile Sharing and File Sharing Communities

Freedom of Technology Freedom of Technology Music IndustryMusic Industry

““Money” Money” Artists / MusiciansArtists / Musicians

IncentiveIncentive GovernmentGovernment

Copyright LawsCopyright Laws Definition of the InternetDefinition of the Internet

File Sharing and File File Sharing and File Sharing CommunitiesSharing Communities

IF NAPSTER WINS:IF NAPSTER WINS: Boom in the Information Technology MarketBoom in the Information Technology Market

More File-Sharing programs will be created and More File-Sharing programs will be created and implemented by industrious programmers.implemented by industrious programmers.

Different types and higher performanceDifferent types and higher performance

For ExampleFor Example:: Audiogalaxy, Gnutella and its offspring, and Audiogalaxy, Gnutella and its offspring, and

Morpheus.Morpheus.

File Sharing and File Sharing File Sharing and File Sharing CommunitiesCommunities

Increased Increased InterestInterest in File-Sharingin File-Sharing With more interest With more interest

in file sharing sites in file sharing sites comes more comes more financial value. financial value.

$$$$$$$$$$More MoneyMore Money$$$$$$$$$$

Increase in Increase in Internet CommerceInternet Commerce More Corporations More Corporations

will get involved in will get involved in this new medium.this new medium.

Why Stop at Why Stop at Music?Music? With the increase With the increase

in file sharing in file sharing sites, there will be sites, there will be a demand for a demand for more.more.

MoviesMovies NewscastNewscast Archived Archived

Television showsTelevision shows

File Sharing and File File Sharing and File Sharing Communities Sharing Communities

IF NAPSTER LOSESIF NAPSTER LOSES File Sharing as a whole will be vulnerableFile Sharing as a whole will be vulnerable

Will set legal precedence for the RIAA Will set legal precedence for the RIAA (Record Industry Association of America) to (Record Industry Association of America) to apply to any site and community that shares apply to any site and community that shares music without permission.music without permission.

DeCSS and other decryption programs will be DeCSS and other decryption programs will be partially outlawed.partially outlawed.

Allows only the industry to market selected Allows only the industry to market selected itemsitems

not at the Napster Scale.not at the Napster Scale.

Music IndustryMusic Industry

IF NAPSTER WINS:IF NAPSTER WINS: The Music Industry has to address the The Music Industry has to address the

Internet as a new medium.Internet as a new medium. Make the adjustment similar to the one Make the adjustment similar to the one

made with radio stations and cassette tapes.made with radio stations and cassette tapes. Create new communitiesCreate new communities

Fan Clubs and other Music-based CommunitiesFan Clubs and other Music-based Communities

Music IndustryMusic Industry

IF NAPSTER LOSESIF NAPSTER LOSES The Music Industry will have a tighter The Music Industry will have a tighter

grip on the music that is spread through grip on the music that is spread through the internet.the internet. The music that the industry wants to The music that the industry wants to

promote will dominate promote will dominate

Artist / MusicianArtist / Musician

IncentiveIncentive Napster, hypothetically, robs artist of a Napster, hypothetically, robs artist of a

reward for their workreward for their work therefore, hypothetically, an artist may not therefore, hypothetically, an artist may not

have the same incentive to create the best have the same incentive to create the best possible product.possible product.

Resulting in Poor Quality of MusicResulting in Poor Quality of Music

Government: Copyright Government: Copyright lawlaw

IF NAPSTER WINS:IF NAPSTER WINS: the government will be forced to augment the government will be forced to augment

the present Copyright Lawsthe present Copyright Laws Napster case creates a legal precedence for Napster case creates a legal precedence for

internet pirating. (Worse Case Scenario)internet pirating. (Worse Case Scenario) Lack of Protection for ArtistLack of Protection for Artist

IF NAPSTER LOSESIF NAPSTER LOSES The Copyright laws remain the same but The Copyright laws remain the same but

the enforcement of the Internet will have the enforcement of the Internet will have to be addressedto be addressed

Government: Internet Government: Internet RegulationRegulation

Government Needed InterventionGovernment Needed Intervention Win or Lose, the Internet must be definedWin or Lose, the Internet must be defined

Business, Entertainment, or Information Business, Entertainment, or Information ResourceResource

RegulationRegulation Upon definition the guidelines of the Internet Upon definition the guidelines of the Internet

must be setmust be set Addressing the File Sharing CommunityAddressing the File Sharing Community

The legal precedence may lead to the The legal precedence may lead to the impedance of the access to information.impedance of the access to information.