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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: tdadams
What is that gaggle? "Bwahahaha"? Sounds like the sheep bleating I heard from the farm next door where I grew up. Do sheep get copyrights?

And as to music, did Bach, Mozart, Ludwig von Beethoven, and Brahms? Did they get copyrights?

481 posted on 08/29/2002 8:34:13 AM PDT by bvw
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Comment #482 Removed by Moderator

To: Leroy S. Mort
Well, that certainly got me to get on with offsite archiving the rest of my 9000+ mp3s.
483 posted on 08/29/2002 8:52:02 AM PDT by wattsmag2
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To: bvw
Copyright law is a fairly recent development. It was not codified in Mozart's time, but you also didn't have millions of teenagers downloading from the internet either. You also had a society that took pride in patronizing the arts. We live in a different world today.
484 posted on 08/29/2002 8:54:14 AM PDT by tdadams
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Comment #485 Removed by Moderator

To: bvw
". Would you have, come brain implants, that every time I remember your song that some electronic transfer makes my account poorer and your own richer? If so we are to fight, and strength, not logic will win out. "

"come brain implants" - Geez, bvw, you're more of a pessimist than I am. But I believe your warnings of violence are moot come that point. ;)

And you probably shouldn't cite a struggle between logic and strength here, since today it is actually the file swapper that celebrates his strength, against the logic of economics, in the most meaningful sense of those ideas. He may, and likely will, win (by force) the battle over the foundations of intellectual markets. But he will probably lose more than he gains in the end.

Creators, by that point, will increasingly be distracted by sustenance labors - doing redundant things (immune from instant theft) they'd rather not do, or they squander their talents by doing. The trend toward dampening the profitablility of intellectual markets will have an effect no different than common price controls. Quality suffers first, then quantity.

I'm not one to believe the basic nature of economics changes with technology, simply because man's physicality is a constant. Until man separates himself completely from physicality as we now understand it, he will always need to eat. He will always need shelter. And if scarce resources required for sustenance need to be allocated among many ( most of whom, among billions, cannot be farmers) intellectual markets need to be preserved, enhanced, and managed as a means of recognizing emerging forms of human utility on an increasingly crowded planet. If we remove that market without first removing the reliance on physical matter, there will be economic danger the likes of which has never before been seen.

Many thanks for an interesting question, bvw.

486 posted on 08/29/2002 10:52:08 AM PDT by Mr. Bungle
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To: Mr. Bungle
I want to continue this but need time to respond, since it is interesting.
487 posted on 08/29/2002 11:58:29 AM PDT by bvw
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To: tdadams
"You gonna foot the bill for the artist to re-record it solely for you?"

That's idiotic, there are studio versions of songs, and live versions. Artists can press both.

Now, we can also add the remix version, and during the Disco era, the extended version.

"Ten years? Be honest... how hard were you really looking?"

Actually longer. This service you linked me to, was it available ten years ago, fifteen years ago?

"I found Morning Girl and In a Broken Dream in a matter of minutes."

No you didn't, you found exactly what I was talking about. You found them both in a CD with 13 or 14 other songs I don't want. But the recording industry wants to force me to pay anywhere from $10 to $12 for my one friggin' song.

Greedy.

All that the industry has to do is to recognize the fact that their customers want a new way to buy music. We want what we want, not what you're trying to shove down our throats.

Let me go into a site, and download individual songs, charge me fair market value (considering the fact that there will be minimal labor costs involved, no shipping, no disc, no case, no dead stock, the price should go down considerably) and let me do what I want to do. I'll be happy to pay!

As far as the Constitutional issue, the industry stood on the Bill of Rights when it suited them, and now the want to stomp on it because it suits them.

488 posted on 08/29/2002 2:01:10 PM PDT by Luis Gonzalez
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To: Mr. Bungle
"I'm not one to believe the basic nature of economics changes with technology."

The nature of economics is to supply the consumer with that which he wants.

People want a new way to obtain music, and the industry will not face that fact.

489 posted on 08/29/2002 2:09:46 PM PDT by Luis Gonzalez
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To: Luis Gonzalez
The nature of economics is to supply the consumer with that which he wants.

No. The nature of economics is the mechanism by which scarce resources with alternative uses are best allocated. The talent required to create [whatever] is in itself a scarce resource.

People want a new way to obtain music, and the industry will not face that fact.

Thanks for entirely missing the point of my posts, and reinforcing my belief that pirates, as a symptom of addicion, expend great energy to deny the larger picture.

*sigh*

490 posted on 09/07/2002 6:28:27 PM PDT by Mr. Bungle
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