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File sharing has become the way of communicating over the internet, allowing people to work on projects from different places at one time, through a networked a networked society (Bruns 2003, 2). File sharing, compressed files stored on computers, link in a network. Once signed in, their digital files become part of the central computer system and can be accessed by other users [[1]].
An example of file sharing technology is the peer to peer program Napster. In order for the old Napster to work as a file-sharing network, several steps must occur. When the Napster programme is used, the PC acts as a server for the Napster network allowing files to become available and shared amongst other users. Filesharing technology uses the same framework in all programs. Kazaa uses a very similar function for sharing files in a P2P format, however the program uses supernodes and a unlike Napster uses a decentralised server (Montgomery 2004, 22). In order for Kazza and Gnutella to work, the users place the files they wish to share on their hard disks in order to share these files. Files that can be shared through these peer to peer networks vary from music files, movies, computer software and other creative content and the illegal sharing of this content does have massive effects on the creative industries (Creative Content Media).
Creative content can be defined as the subject matter or symbolic significance of something that has gone through a creative process (Wallace 1998, 15). The creative process includes developing intangible ideas and processing them into usable technology. The largest form of creative content the internet is in digital form. This is when the files are compressed in to a digital file. This compression takes the redundancy out of the file and makes it much smaller in size, allowing for faster transferring through the internet (Wallace 1998, 15). Examples of digital content files includes Music files - MP3, Movie fies - Mpeg, and still picture files - Jpeg. These files prove to be a much faster and more efficient method of transferring files over the internet.
Another defining element of digital creative content is content matter. The content of many of the files downloaded through filesharing programs is largely music and software for computers. Digital form makes the content of files, higher quality in sound and picture, and can be downloaded on to external plug ins such as ipods and Mp3 players (Wallace 1998, 20) making a cost effective and conveinient mode of dispersion.
The inception of file-sharing technologies into mainstream use on the Internet revolutionised the traditional Paradigms for distribution of digital creative content. Napster was the main driving force behind the massive increase in the online sharing of copyrighted materials in the late 1990s (Jones, 2003). Originally, Napster main purpose, was for sharing Mp3 files, however soon after Napster was created, a rush of copycat programs such as Kazaa, Imesh and Morpheus emerged as alternatives. These programs were used for a wider array of content including images, movies and software (McCandless, 2001).
The original Napster was despised by music industry professionals, who saw the program as a threat rather than an opportunity. In conjunction with the band Metallica, record companies had the original Napster shut down its central index, thus rendering the program useless (Schumacher-Rasmussen, 2003). After managing to set precedence, the next program to be targeted for legal action was Morpheus. Morpheus was able to have their case dismissed by using the Betamax Defence. A judge ruled "Grokster and Streamcast [the company that provides Morpheus software] are not significantly different from companies that sell home video recorders or copy machines, both of which can be and are used to infringe copyrights". The court also pointed out that over 61 million Americans use file sharing technology and that these technologies should not be expelled because of misuse (EFF, 2004). Effectively, this ruling meant that file sharing technologies should not be linked with piracy as that is only one possible use of many.
Newer file sharing technologies like Kazaa have reformed themselves to work co-dependently in a decentralised network of supernodes. Effectively this means that in order to shut down the Kazaa network, enforcers would have to physically delete every copy of the program in existence (McCandless, 2001). One study suggests that an average of 3.5 million users are connected to the P2P program Kazaa, at any one time (Schumacher-Rasmussen, 2003), making it difficult to combat piracy claims.
Mp3s are only one of many types of files traded on the internet in programs like Kazaa. The invention of the Divx format has allowed DVD movies to be compressed down to be small enough to fit onto a CD. Added together with the increased popularity of broadband, Divx copies of copyrighted films are now readily traded on the Internet (Cole, 2004). Before Divx the motion picture industry did not feel threatened by file sharing technologies because file sizes were too great for decent quality. Now that Divx has arrived, protection of illegal copies from being released on the internet has become challenging for industry professional, and have been known to place blame on the technology for a decrease in sales. For example, claims were made that the film Soul Plane starring Snoop Dogg being available in high quality on the Internet for over a month before the films official release, resulted in the film being a flop. Its producers blamed the films lack of success on a leaked copy being pirated (Cole, 2004).
Individuals have been targetted as a means of combatting piracy (EFF, 2004). College students in particular have been hit with hefty fines (Chmielewski, 2004). Motion picture companies have looked at the problem differently. According to the British Video association (BVA), 1.67 Million UK residents are downloading illegal video off the Internet. BVA estimates this as being a loss of $45 million in DVD sales revenue or 2 per cent of the gross. However, in the face of these losses the movie industry has rejected law suits and focused on appealing to the conscience of the perpertraters. BVA Director-General Lavinia Carey observes what has happened in the music industry and is taking a different approach to downloading, but supporting developments of legal downloads, allowing uses to pay for their files (Cole, 2004).
The Recording Industry Association America (RIAA) is at the forefront of a legal stalemate against pirates of digital creative content. In the United States, the RIAA have pursued individuals, particularly college students, hoping that making an example of the day-to-day offenders will act as a deterrent to the nearly 61 million users of peer-to-peer file-sharing technology across the country. In 2001, the RIAA filed suit against 531 college students for copyright infringement, after identifying the users for significant breaches and misuse of file-sharing technology for the downloading of music. The emergence of Napster just two years earlier in 1999 was held responsible for a rapidly spreading wave of piracy propelled largely by students engaged in file-swapping on American college campuses. This significant headway made by the RIAA acted as a launching pad for its Australian counterparts who in 2003 raided Sharman Networks headquarters (and the homes of its executives) to find evidence for suspected misuse of its search engine, Kazaa, to facilitate illegal file-sharing of protected digital creative content amongst its widespread user base.
The music industry's fight back on piracy and file-sharing is being piloted by some the worlds leading recording companies such as BMG, EMI, and Time Warner. Although Compact Discs are noted as continuing to account for up to 86 per cent of total sales for recording music in England, recording kingpins are thinking of ways to re-invent the nature in which music is produced, packaged, and sold to consumers in an attempt to recapture a user population currently immersed in a wave of illegal file-sharing and downloading music (Winkley, 2004). Bertelsmann, president of BMG worldwide, has announced the companys three-tier strategy for the sale of compact discs. Several international recording artists have already committed to this revolutionary approach to music sales which involves publishing 3 versions of each CD album sold: a cheap, no frills version with a plain cover and no lyrics; the regular version of a CD which is currently sold worldwide; and a more expensive version containing bonus material and multimedia content. This strategy is launched with an intent to meet the needs of users from different ends for the market spectrum, and relies on a belief that users will return to legitimate CD purchasing for a fraction of the usual price (Winkley 2004). EMI, however, are more focused on developing and expanding the market for online music, predicting that it could make up nearly one-quarter of its total sales market by 2009. Similarly, major players in the Asia-Pacific music sector are recognizing the exponential growth in sales of licensed and legitimate digital creative content online, which is expected to be responsible for almost nine per cent of the sales market by 2008 (PwC, 2004).
The continued emergence of online subscription outlets over the past 12 months is a further attempts to protecting digital creative content from piracy. The purpose and functionality of these outlets is to provide users worldwide with online access to make legitimate copies of and licenses for digital music for a nominal cost. The market mover in this respect was Apples iTunes, a digital music subscription service developed in conjunction with the release of the iPod Player, Apples compact digital music player capable of storing up to 10,000 songs. Within its first year of operation, the online Apple's iTunes store sold 70 million songs in the United States alone, yet the product is yet to become available to Australian users (Jones, 2003). Industry competitor, Microsoft answered with a competitive product recently introduced, known as Janus (Lewis, 2004). Microsoft's unique software differs to iTunes in the availability of licenses. Instead of transferring title of a song, users simply borrow a song for a one-month period for a fraction of the cost, and can choose whether or not to continue subscribing to each song. This idea therefore allows users to enjoy thousands of songs for as little as US$10 per month, rather than buying songs for US$0.99 through the iTunes store(Lewis, 2004). Sony also announced its bid to enter the online subscription market with its product, SonyConnect being launched in the United States.
The success of these products directly depends on the relationship between the music industry and the corporate world. For example, Sonys partnership with United Airlines allows users to swap frequent flyer miles for songs on SonyConnect and viceversa(Trakin, 2004). McDonalds Restaurants also run a promotion in the United States in partnership with Apple, allowing customers who purchase a large McValue meal to receive one free download from the iTunes website (Trakin, 2004). These online outlets also operate largely in conjunction with the RIAA, whos aim it is to deter current users from illegal file-swapping.
Kate Mitchell 17:15, 27 Oct 2005 (EST)
Daniel Fisher 19:21, 9 Sep 2004 (EST)
Kate Mitchell 16:47, 27 Oct 2005 (EST)
