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DOJ to prosecute file swappers
ZDNet News ^ | August 20, 2002 | Declan McCullagh

Posted on 08/21/2002 10:34:16 AM PDT by Leroy S. Mort

ASPEN, Colo.--The U.S. Department of Justice is prepared to begin prosecuting peer-to-peer pirates, a top government official said on Tuesday.

John Malcolm, a deputy assistant attorney general, said Americans should realize that swapping illicit copies of music and movies is a criminal offense that can result in lengthy prison terms.

"A lot of people think these activities are legal, and they think they ought to be legal," Malcolm told an audience at the Progress and Freedom Foundation’s annual technology and politics summit.

Malcolm said the Internet has become "the world's largest copy machine" and that criminal prosecutions of copyright offenders are now necessary to preserve the viability of America's content industries. "There does have to be some kind of a public message that stealing is stealing is stealing," said Malcolm, who oversees the arm of the Justice Department that prosecutes copyright and computer crime cases.

In an interview, Malcolm would not say when prosecutions would begin. The response to the Sept. 11 terrorist attacks temporarily diverted the department's resources and prevented its attorneys from focusing on this earlier, he said.

A few weeks ago, some of the most senior members of Congress pressured the Justice Department to invoke a little-known law, the No Electronic Theft (NET) Act, against peer-to-peer users who swap files without permission.

Under the NET Act, signed by President Clinton in 1997, it is a federal crime to share copies of copyrighted products such as software, movies or music with anyone, even friends or family members, if the value of the work exceeds $1,000. Violations are punishable by one year in prison, or if the value tops $2,500, "not more than five years" in prison.

Cary Sherman, president of the Recording Industry Association of America (RIAA), said his industry would "welcome" prosecutions that send a message to song-swappers.

"Some prosecutions that make that clear could be very helpful...I think they would think twice if they thought there was a risk of criminal prosecution," said Sherman, who was on the same conference panel.

Christopher Cookson, executive vice president of Warner Bros. and another panelist, said there was "a need for governments to step in and maintain order in society."

Swapping files in violation of the law has always been a civil offense, and the RIAA and the Motion Picture Association of America (MPAA) have the option of suing individual infringers and seeking damages.

But, Malcolm said, criminal prosecutions can be much more effective in intimidating file-swappers who have little assets at risk in a civil suit. "Civil remedies are not adequate...Law enforcement in that regard does have several advantages," Malcolm said. "We have the advantage, when appropriate, of opening up and conducting multi-jurisdictional and international investigations.

"Most parents would be horrified if they walked into a child's room and found 100 stolen CDs...However, these same parents think nothing of having their children spend time online downloading hundreds of songs without paying a dime."

Gary Shapiro, president of the Consumer Electronics Association, said he was skeptical about the view that peer-to-peer piracy should be a criminal offense. "If we have 70 million people in the United States who are breaking the law, we have a big issue."

The DOJ already has used the NET Act to imprison noncommercial software pirates, which software lobbyists hailed as "an important component of the overall effort to prevent software theft."

During his confirmation hearing in June 2001, Attorney General John Ashcroft told Congress that "given the fact that much of America's strength in the world economy is a result of our being the developer and promoter of most of the valuable software, we cannot allow the assets that are held electronically to be pirated or infringed. And so we will make a priority of cybercrime issues."

The letter from Congress complains of "a staggering increase in the amount of intellectual property pirated over the Internet through peer-to-peer systems." Signed by 19 members of Congress, including Sen. Joseph Biden, D-Del., Rep. James Sensenbrenner, R-Wis., and Sen. Dianne Feinstein, D-Ca., the letter urged Ashcroft "to prosecute individuals who intentionally allow mass copying from their computer over peer-to-peer networks."


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Front Page News; Technical
KEYWORDS: justiceriaamp3
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To: Lower55
The story has nothing to do with the subject matter. Mob rule is not the topic.

Property rights are fundamental to liberty.

141 posted on 08/22/2002 9:17:44 AM PDT by Protagoras
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To: Dead Corpse
Of course Democrats are for this. The practice of "swapping" music and movies eats heavily into the recording and music industry's bottom line. It will only get worse as bandwidth technologies progress.

Please remember that the recording and movie industries are HEAVY contributors to the socialist democrats. If we eat into their bottom line by downloading music or movies instead of paying for them, we also eat into the socialists’ bottom line. I, for one, encourage everyone I come in contact with to engage in P2P file sharing.

It also needs to be put out that the democrats are the ones who want to throw people in jail for this. This is a win-win situation here. A lot of impressionable young people can be convinced that the dems are "out to get them” This will make a diff when they become voting age. Plus the sharing WILL continue as new methods of encryption and stealth come on line and quality of the downloaded product gets better.

For those of you who find this morally offensive...

So do I! But I find it far more offensive that the socialists run this country. War requires men to commit acts that are distasteful to them. They have used Marxist revolutionary ideas on our country for 50+ years to great success. We can turn it back in their faces. The use of their tactics does not require you to share their ideology.

I have already made my peace with this so please don’t give me a load of crap about right and wrong, save it for the day I am no longer a slave to the "proletariat" and their hired thugs in government. I believe it was Lenin who said that the capitalists would sell them the rope in which we will hang them (paraphrase). I believe that the socialists have created a mass of morally bankrupt, dumb down idiots that we can use to hang them.

Please be sure to only target industries and companies that support the socialists.

Oh, btw...

In those states that allow crossover voting we should be running our people as democrats in their primary, then going out in force to vote for them. We wont be able to get them all in one shot but an incremental increase is ok with me.
142 posted on 08/22/2002 9:19:54 AM PDT by myself6
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To: jjm2111
For TDAdams -- Aren't songs that are hundred's of years old in the public domain anyway?

Yes, a composition becomes public domain 50 years after the death of the writer (or the last living writer if there are more than one writer). However, that only applies to the essense of the composition, not it's specific embodiment. Which means if you want to assemble an orchestra and record Beethoven's 9th, you have every right to do so, without charge to use as you wish.

However, you cannot copy and sell someone else's specific embodiment of that composition. If you take the Boston Philharmonic's recording of Beethoven's 9th, copy it and try to sell it, that's illegal.

143 posted on 08/22/2002 9:20:20 AM PDT by tdadams
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To: Hemingway's Ghost
More and more new artists---and established ones---are discovering they don't need record companies at all.

No problem with that. They will go out of business if they are no longer needed. Shrumpeter called it "creative destruction" as I'm sure you already know.

I guess you shouldn't go for that 5K investment after all. :-)

The market might be right for you now.

144 posted on 08/22/2002 9:21:22 AM PDT by Protagoras
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To: myself6
For those of you who find this morally offensive...

So do I! But I find it far more offensive that the socialists run this country. War requires men to commit acts that are distasteful to them. They have used Marxist revolutionary ideas on our country for 50+ years to great success. We can turn it back in their faces. The use of their tactics does not require you to share their ideology.

Interesting rationalization. But rationalization nonetheless.

145 posted on 08/22/2002 9:21:45 AM PDT by NittanyLion
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To: ThomasJefferson
Under the NET Act, signed by President Clinton in 1997, it is a federal crime to share copies of copyrighted products such as software, movies or music with anyone, even friends or family members, if the value of the work exceeds $1,000.

Every library in the country is in violation of this law. Or is this one of those cases where it's OK for the gubmint to do it, but not private citizens? This is a bad law. No doubt about it.

146 posted on 08/22/2002 9:22:10 AM PDT by BigBobber
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To: Leroy S. Mort
Is anyone else starting to believe tha Bush could have done better than Ashcroft? This man seems to have his priorities all mixed up.
147 posted on 08/22/2002 9:26:46 AM PDT by Chess
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To: tdadams
You still haven't answered my point about the price being artificially inflated.

You still haven't answered my question about whether you think Metallica's music is worth millions.

You still haven't countered my point about how distributors have no choice in buying music. Sam Goody cannot choose to purchase Metallica's music from Sony, BMG, Vivendi, etc. They are FORCED to buy the music at an aritificially high price. The only reason why the price of music is not even higher is because it's a the highest the market will bear right now.

Before cable deregulation many people "stole" cable buy bribing the cable guy to wire them in for free. With the choices of cheap satellite TV, and multiple cable providers, people have real choice now.

The choice between cable or no cable was never a real choice. The choice between music or no music is also not really a choice.
148 posted on 08/22/2002 9:27:09 AM PDT by jjm2111
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To: Hemingway's Ghost
Give me $5-10K to invest and I could create a first-class studio in my attic. With an internet server I could distribute my productions anywhere.

Sure you could, just as thousands of others already have. But how many of those home studio recordings are holding spots in the top 100? Most artists who go that route press 1000 CDs, hand out about 150 to friends and family and use the rest for coasters. I've seen it too many times. But good luck to you if you think you can do better.

149 posted on 08/22/2002 9:28:39 AM PDT by tdadams
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To: BigBobber
Under the NET Act, signed by President Clinton in 1997, it is a federal crime to share copies of copyrighted products such as software, movies or music with anyone, even friends or family members, if the value of the work exceeds $1,000.

(bold mine) Copies is the key word. They lend originals at the library.

Every library in the country is in violation of this law. Or is this one of those cases where it's OK for the gubmint to do it, but not private citizens? This is a bad law. No doubt about it.

It is unclear which law you are talking about. But of course the government allows itself to do what you cannot. Which of course should not be the case.

150 posted on 08/22/2002 9:28:44 AM PDT by Protagoras
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To: ThomasJefferson
The story has nothing to do with the subject matter. Mob rule is not the topic

It has everthing to do with the topic. Copywrite law was passed. So was seat belt laws.

Here's another analogy you might understand....

Ten thousand people in a town. Two thousand are property owners. They vote to raise property taxes. Everyone votes. IT HAPPENS EVERY DAY!

151 posted on 08/22/2002 9:28:49 AM PDT by Lower55
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To: ThomasJefferson
No problem with that. They will go out of business if they are no longer needed. Shrumpeter called it "creative destruction" as I'm sure you already know.

I don't even know who the hell Shrumpeter is.

I guess you shouldn't go for that 5K investment after all. :-)

Aw, don't give my wife any more ammo than she already has!

152 posted on 08/22/2002 9:29:36 AM PDT by Hemingway's Ghost
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To: jjm2111
The choice between cable or no cable was never a real choice. The choice between music or no music is also not really a choice.

Amazing situational ethics. And misunderstanding of economics to boot.

153 posted on 08/22/2002 9:30:40 AM PDT by Protagoras
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To: jjm2111
The concert cost me $0 and their CD cost me $5. Now, you tell me why their CD costs $17.99 in Sam Goody because it has a record label logo stamped on the back of it? Their music did not get any better? The record label did not add any value to me, the consumer.

The price went up because they added in more profit, you goofball. They don't have to add value. You paid for it.

Populism is founded on an ignorance of free market economics.

154 posted on 08/22/2002 9:31:31 AM PDT by Taliesan
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To: Goodlife
2) In the 19th century, there was a burgeoning industry involved with shipping ice from the arctic to tropical regions, to preserve food. Refridgeration killed that whole industry. The ice shippers were not interested in marketing refridgeration, or evolving with it. They tried to quash it.

Now THAT is an excellent analogy.

155 posted on 08/22/2002 9:31:51 AM PDT by Petronski
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To: jjm2111
You still haven't answered my point about the price being artificially inflated.

Price is that point on the graph where supply and demand intersect.

I honestly hope that helps.

156 posted on 08/22/2002 9:33:49 AM PDT by Taliesan
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To: NittanyLion
you stated "Interesting rationalization..."

You assume to much...

I never said that I actually download this stuff. I only promote it among the mindless masses. You know, the ones that the socialist schools and media have turned into moral relativist, brainless pack zombies.

Try again...

157 posted on 08/22/2002 9:34:05 AM PDT by myself6
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To: Hemingway's Ghost
I don't even know who the hell Shrumpeter is.

LOL, Well you understood his economic theory (written a long time ago) so it's a moot point if you know him.

158 posted on 08/22/2002 9:34:05 AM PDT by Protagoras
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To: ThomasJefferson
A snide comment is no match for a sound argument. Make one Thomas.

The choice between buying a Metallica and not buying one at all is not really a choice. It's not like shopping for one at $12.99 and one at $16.99. PTP might be against the "law" but it is the market seeking the correct value for popular music.
159 posted on 08/22/2002 9:34:25 AM PDT by jjm2111
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To: Taliesan
The record label monopolies artificially restrict supply. I do not have an economics degree but I'm not THAT ignorant of the subject.
160 posted on 08/22/2002 9:35:56 AM PDT by jjm2111
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