P2P File Sharing: P2P File Sharing: The Digital The Digital DilemmaDilemma

ITED 8100ITED 8100

Group Project: Cathie Arnold, Group Project: Cathie Arnold, Melissa Barker, and Allen Melissa Barker, and Allen

BullockBullock

Who are we?Who are we? Our organization is a radio station conglomerate. Our organization is a radio station conglomerate. We own many large and several small radio We own many large and several small radio

stations throughout the Southeastern United stations throughout the Southeastern United States. States.

Our organization employs many radio Our organization employs many radio personalities, technicians, and other personnel personalities, technicians, and other personnel needed to run the radio stations.needed to run the radio stations.

Upon being hired into our organization (whether Upon being hired into our organization (whether at the corporate headquarters or at a small at the corporate headquarters or at a small station) the Acceptable Use Policy is explained. station) the Acceptable Use Policy is explained.

Each employee receives a copy of the Acceptable Each employee receives a copy of the Acceptable Use Policy (AUP) and they sign the policy stating Use Policy (AUP) and they sign the policy stating their understanding and acceptance of the their understanding and acceptance of the policy.policy.

The ProblemThe Problem

We received notice that a technology support We received notice that a technology support employee at one of our small affiliate radio employee at one of our small affiliate radio stations was cited for illegal file sharing.stations was cited for illegal file sharing.

As the parent company, we could also be As the parent company, we could also be held liable for illegally downloading held liable for illegally downloading copyrighted materials. copyrighted materials.

Upon an initial investigation, we discovered Upon an initial investigation, we discovered that music files had been shared through that music files had been shared through P2P file sharing web sites through the use of P2P file sharing web sites through the use of the radio stations network server.the radio stations network server.

The PlanThe Plan

Our station management team has Our station management team has instructed us to create a committee to instructed us to create a committee to address this problem from a multitude of address this problem from a multitude of angles. angles.

We have decided to focus on the business, We have decided to focus on the business, legal, and creative points of view at this legal, and creative points of view at this time and since in this instance we are the time and since in this instance we are the end users, we will look at our point of end users, we will look at our point of view lastly.view lastly.

Legal Point of ViewLegal Point of View

The underlying The underlying question to the question to the controversy of controversy of

whether P2P file whether P2P file sharing is legal or sharing is legal or not is held within not is held within the US copyright the US copyright

laws. laws.

LawsLaws

Copyright laws keep others from Copyright laws keep others from ‘copying’ original work and profiting ‘copying’ original work and profiting from its sales.from its sales.

Contributory infringement laws are Contributory infringement laws are similar to the ‘aiding and abetting’ laws. similar to the ‘aiding and abetting’ laws.

One person can be held accountable for One person can be held accountable for the actions of others.the actions of others.

Penalties for infringement of copyright Penalties for infringement of copyright are most often civil remedies, this in are most often civil remedies, this in laymen terms is money.laymen terms is money.

Courts have stated…Courts have stated…

P2P websites can be held liable because… P2P websites can be held liable because… “one who, with knowledge of the “one who, with knowledge of the infringing activity, induces, causes, or infringing activity, induces, causes, or materially contributes to the infringing materially contributes to the infringing conduct of another, may be held liable as conduct of another, may be held liable as a contributory infringer.” (Court Rulings a contributory infringer.” (Court Rulings in Lohmann)in Lohmann)

P2P File Sharing SitesP2P File Sharing Sites

Believe they are not liable for how Believe they are not liable for how others use their software others use their software

Believe they cannot control nor keep Believe they cannot control nor keep track of every file sharing incidenttrack of every file sharing incident

Argue that their P2P file sharing system Argue that their P2P file sharing system has legitimate purposeshas legitimate purposes

The Supreme Court The Supreme Court found that the found that the contributory contributory infringement infringement

liability could not liability could not affect a affect a

manufacturer that manufacturer that produces a device produces a device that is “capable of that is “capable of

substantial substantial noninfringing use.”noninfringing use.”

Business Point of ViewBusiness Point of View

Music Industry / ‘Recording Music Industry / ‘Recording Companies’Companies’

Unable to invest in new talent due Unable to invest in new talent due to monies lost because of P2Pto monies lost because of P2P

Payment to artists and creators has Payment to artists and creators has been reduced greatly due to P2Pbeen reduced greatly due to P2P

Receives about $7.50 per CD saleReceives about $7.50 per CD sale

Music Stores Music Stores

(Online and Small Retail (Online and Small Retail businesses)businesses)

Online music stores have suffered Online music stores have suffered monetary loss in sales due to the rampant monetary loss in sales due to the rampant use of P2P illegal file sharinguse of P2P illegal file sharing

Small retail stores have downsized or Small retail stores have downsized or closed due to sales that are no longer closed due to sales that are no longer made due to the availability of these made due to the availability of these items free through P2P networkingitems free through P2P networking

Creators’ Point of ViewCreators’ Point of View

Creating and performing music and Creating and performing music and songsong This capability is both a gift and a talent.This capability is both a gift and a talent. Creators typically want to share their Creators typically want to share their

gift/talent with others.gift/talent with others. Sharing their talent with others presents Sharing their talent with others presents

the opportunity to make money , which the opportunity to make money , which allows the ‘creator’ to focus their full allows the ‘creator’ to focus their full attention on creating more musicattention on creating more music

Creators’ PerspectiveCreators’ Perspective

Many ‘creators’ are unhappy with Many ‘creators’ are unhappy with the current music industry.the current music industry.

Despite the above, many creators Despite the above, many creators do not agree with the current do not agree with the current illegal use of P2P networking.illegal use of P2P networking.

Creators’ believe…Creators’ believe…

They should have the right to They should have the right to maintain control of their music.maintain control of their music.

They should have the right to be They should have the right to be compensated for their efforts.compensated for their efforts.

Creators’ DilemmaCreators’ Dilemma Historically there has been only one Historically there has been only one

method of getting their songs/music to the method of getting their songs/music to the masses…by signing a contract with a masses…by signing a contract with a record label, which then takes control of record label, which then takes control of the music and develops a plan for the music and develops a plan for marketing and distributing to the masses.marketing and distributing to the masses.

Upon signing a record deal, the creator Upon signing a record deal, the creator often gives up rights to the music, turning often gives up rights to the music, turning the copyright over to the record labelthe copyright over to the record label

The creator also loses rights to much of The creator also loses rights to much of the profits produced from CD sales.the profits produced from CD sales.

Distribution of MusicDistribution of Music Unknown artists can post their music to Unknown artists can post their music to

soundclick..com or MP3.com in hopes of soundclick..com or MP3.com in hopes of being discovered and selling music.being discovered and selling music.

Artists can now make their music available Artists can now make their music available through P2P networks in hopes of creating through P2P networks in hopes of creating a demand for their music and ultimately a demand for their music and ultimately increasing sales.increasing sales.

Much of P2P network sharing of music, Much of P2P network sharing of music, however, is done without the consent of the however, is done without the consent of the creator or the copyright holder.creator or the copyright holder.

P2P networks take away ‘distribution P2P networks take away ‘distribution control’ from the creator.control’ from the creator.

End User Point of ViewEnd User Point of View

The P2P file sharing system promotes The P2P file sharing system promotes ‘new’ music.‘new’ music.

CD prices are too high.CD prices are too high. CD’s usually only have one or two songs CD’s usually only have one or two songs

the consumer wants.the consumer wants. Much of the downloaded music is never Much of the downloaded music is never

played by ‘mainstream’ radio stations.played by ‘mainstream’ radio stations. Participants are not benefiting Participants are not benefiting

financially.financially.

End Users believe that P2P file sharing is O.K. because:

End Users believe:End Users believe:

musicians already make enough money musicians already make enough money from merchandise and concerts.from merchandise and concerts.

P2P sharing is allowing them to take P2P sharing is allowing them to take the power back from the record the power back from the record companies.companies.

The current controversy over P2P file The current controversy over P2P file sharing is the fault of the music sharing is the fault of the music industry for not adapting to new industry for not adapting to new technology quick enough.technology quick enough.

The SolutionThe Solution

Ultimately, because our radio Ultimately, because our radio station is a corporation…the station is a corporation…the legal point of view is all that legal point of view is all that matters. We are a company and matters. We are a company and must uphold the current United must uphold the current United States copyright laws whether States copyright laws whether we believe them to be right or we believe them to be right or wrong.wrong.

The SolutionThe Solution

All copyrighted material will All copyrighted material will immediately be removed from company immediately be removed from company servers.servers.

The employee responsible for sharing The employee responsible for sharing the illegal material will be terminated.the illegal material will be terminated.

A committee will rewrite the company A committee will rewrite the company Acceptable Use Policy.Acceptable Use Policy.

The policy will be rewritten to The policy will be rewritten to specifically address the issue of P2P specifically address the issue of P2P file sharing on company servers.file sharing on company servers.

Sources Sources Animations: Animations:

http://www.animationlibrary.com/al/?n=subcat_images.php3&id=32&start=60&end=http://www.animationlibrary.com/al/?n=subcat_images.php3&id=32&start=60&end=2020

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