In the past several weeks, stories on music piracy, file-sharing legitimacy, psychologically-targeted lawsuits and controversial court rulings made significant headlines, but the news itself was full of lurid stupidity and cursory amateur analyses.
On Friday, April 25, a U.S. District Court Judge ruled that two of the most popular file-swapping services, Morpheus (operated by StreamCast Networks) and Grokster, were not liable for copyright infringement by users of their software. The plaintiffs, all major record labels and motion picture studios, were outraged and vowed to appeal. Within hours, the decision sparked front-page stories and bombastic commentary, calling it 'stunning' and 'a major blow' for the industry.
In fact, it was just the opposite. The Recording Industry Association of America (RIAA) and the Motion Picture Association of America (MPAA), the two major organizations on the frontlines of the war on Internet piracy, were shooting in the dark with a case destined to fail.
Unlike the previous versions of Morpheus and Grokster, the current decentralized architecture of the software was specifically developed to evade legal liability for intentionally assisting the theft of copyrighted works. U.S. District Court Judge Stephen V. Wilson rightly assessed that the claim that StreamCast Networks and Grokster were engaged in contributory infringement by offering computer products with potential (and actually real) dual use was untenable in the court of law. After all, objectively speaking, both Morpheus and Grokster provide the resources for illegal distribution of music, movies, software and other protected materials, but the technical advantage and the global reach of the Internet make the issue so unacceptable.
Judge Wilson cited the famous Sony v. Universal case that declared the production of video cassette recorders (VCRs) was not illegal, although the VCRs were being used by some purchasers to unlawfully copy films. But unlike the Internet, the VCR is a local, limited tool.
The gist of the problem is not its nature, but its scope. Given the globally spread and fully liberal medium, Internet-related controversies are having growing proportions, and in this case, threatening ones.
The music, the movie and the software industries employ millions of people worldwide. Yet, even more millions are facing an opportunity to get a product, for which they once spent money, for free. The numbers are unambiguously indicating the majority's choice. A rapid decline in CD sales, contributing to a growing global economic slump, to-be-released movies being freely downloaded over high-speed connections, pirated programs proliferating across desktop computers.
The RIAA, the MPAA and other anti-piracy organizations have managed to realize the extent of the threat. After being baffled by unsuccessful lawsuits against technologically-savvy companies like Grokster and StreamCast, they are increasingly working to change the fundamentals. Reinvigorated efforts to push for new legislation and a new wave of litigations against individual users, illicitly spreading copyrighted works, are seeking to hit on the psychology of the file-swapper. Additionally, new campaigns to educate the public of the damages being afflicted aim to deter the honest music lover.
It is hard to say that the industry has been driven a step back. Although a U.S. court has ruled Morpheus and Grokster legitimate applications, music, movie and software piracy remains illegal and punishable. Those claims will be reinforced in the coming months and years as organizations like the RIAA step up their efforts to sue Internet pirates.
But the outcome of this fight won't be unilaterally decided. Either governments around the world will recognize the threat and embrace the efforts of anti-piracy groups or Internet users will outpace those attempts and ultimately destroy, or at least cause incorrigible harm to the respective industries.
As technology progresses and Internet usage grows, piracy may backfire, diminishing whole sectors of the economy, affecting growth and hurting the labor market.
Years after the demise of Napster, the first file-sharing service, the issue has turned not only into a political, but also into a social and cultural phenomenon. Napster established a technology whose primary use harms market economy -- the very environment that once paved the way for the technology's creation.
And indeed, at the finale, as you grasp the outcome, you should never forget one thing -- the choice was yours.
