The popularity of the file sharing systems is huge, having taken off since Napster took its file sharing system off-line in the wake of lawsuits. P2P software from Morpheus has been downloaded more than 51 million times; from KaZaA almost 45 million times. These post-Napster systems have been regarded as impossible to shut down, even in the face of court orders, because they do not rely on a centralised server.
However, last week, users were shut out of the file sharing networks, which suggests that the companies may be able to control their networks in a way previously thought to be impossible. The Recording Industry Association of America says it has always known that the companies had control over the use of their systems.
Judge Stephen Wilson rejected the arguments of KaZaA, Grokster and StreamCase Networks, owner of Morpheus that the “Betamax defence” applied to their case and should have it thrown out before going any further. This defence was established in a Supreme Court ruling in the 1980s in favour of the VCR format. The argument runs that while some people are obviously using the technology illegally, it is capable of "substantial non-illegal use". The judge said the companies had “jumped the gun” in making the argument at this stage of the trial.
If the music and movie industries win their argument that the companies allowed the pirating of music and movies, the next stage of the case will examine damages.
Meanwhile, the file sharing systems have begun fighting among themselves. Dutch company KaZaA BV, which until recently licensed software to StreamCast Networks for Morpheus users, said that it pulled the plug on the system last week because of unpaid bills. StreamCast, on the other hand, claims its downtime was because it was the victim of a denial of service attack. It is claiming that the KaZaA network is inherently unsafe.
StreamCast alleges that KaZaA was able to change settings in Morpheus-users’ computers. KaZaA denies this and is offering a “migration tool” to Morpheus users. StreamCast has set up a competing network based on software from a company called FastTrack, based on the Gnutella protocol. To further complicate matters, KaZaA BV’s software is now owned by an Australian company which, so far, has not been sued.
At a conference yesterday in London, Peter Chernin, president of News Corporation told media executives that file sharing services were giving him serious concerns. “We’re in the process of raising a generation to think that stealing is OK,” he said.