File-Sharing Firms Are Urged
To Protect Music-Industry Rights
By SARAH MCBRIDE
Staff Reporter of THE WALL STREET JOURNAL
September 15, 2005; Page D8
The Recording Industry Association of America has sent cease-and-desist letters to several file-sharing companies, including BearShare, LimeWire and WinMX, asking that they stop activities that allow users to download copyrighted music.
The letters ask the companies to "immediately cease and desist from enabling and inducing the infringement of RIAA member sound recordings," according to a copy of the letter reviewed by The Wall Street Journal.
The letters are an attempt by the music industry to build on the favorable ruling it received from the U.S. Supreme Court in June in the so-called Grokster case, involving a file-sharing company that was accused by the industry of facilitating copyright violations. In that ruling, the court found that copyright holders could sue file-sharing companies for encouraging people to violate copyrights. Now, the industry is taking the first step toward enforcing the ruling against other file-sharing companies.
"Companies similar to Grokster have been given ample opportunity to do the right thing," said the RIAA, which confirmed sending the letters to seven file-sharing companies.
The RIAA has long said it supports legal uses of file sharing. It wants file-sharing firms to alter their software -- for example, by creating filters to strip out copyrighted material or creating mechanisms to pay copyright holders. In recent months, it has been working with several file-sharing firms, including iMesh and Mashboxx, to create services that wouldn't violate copyrights.
The file-sharing companies that received cease-and-desist letters can shut down, fight the RIAA in court, or make changes that mollify the RIAA.
Despite the Grokster decision, a court case based on other file-sharing programs wouldn't necessarily be open and shut, says Ralph Oman, the former U.S. Register of Copyrights and a Washington, D.C.-based intellectual-property lawyer at the law firm Dechert LLP. The Supreme Court found that Grokster and co-defendant Morpheus were actively pursuing former users of the original Napster, a free file-sharing service found to be illegal, and remanded the case to trial court for further consideration. (A new Napster service offers paid, legal downloads.) It might be harder to prove that for the newer services.
Mr. Oman said file-sharing companies would have to prove they had "some credible rationale other than the promotion of illegal file sharing."
LimeWire confirmed receiving the letter, but declined to comment on any action it would take. BearShare and WinMX didn't respond to requests for comment. As of last night, these companies were still offering unchanged file-sharing software programs for download.
THE WALL STREET JOURNAL
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RIAA Pretends It Fully Won The Grokster Case --- Threatens Other P2P Providers
Contributed by Mike on Thursday, September 15th, 2005 @ 03:50AM
from the this-ought-to-be-fun dept.
While the actual Supreme Court decision in the Grokster case was not completely what the entertainment industry wanted, ever since it came out, they've been acting as if the Supreme Court ruled 100% in their favor. What the court actually said was that companies would not be protected if they were shown to have taken affirmative steps to encourage the sharing of unauthorized copyrighted material -- the so-called induce standard. The standard, itself, is still quite fuzzy. Fuzzy enough, in fact, that the RIAA didn't waste much time going around telling people that the court had declared all file sharing programs that didn't have deals in place with the industry as illegal. Basically, they started suggesting that almost anything they could think of was inducing copyright infringement. Of course, that was jumping the gun, because the Supreme Court didn't say whether or not Grokster and the others did, in fact, induce infringement. They sent that question back to the lower court, which has yet to decide. In the meantime, though, it should come as no surprise that the RIAA has now let its own interpretation go to its head and has sent legal nastygrams to other file sharing app companies, including those behind BearShare, LimeWire and WinMX, telling them all (notice the language) that they must "cease and desist from enabling and inducing the infringement." Considering that it's not even clear if the first set of companies they sued infringed, it would appear that the RIAA is jumping the gun a bit. The RIAA needs to realize that they don't get to decide what the definition of induce is. That's for the courts to clear up. But, for right now, it appears the RIAA's definition of "inducement" is any app that lets unauthorized files be shared -- which is a pretty broad definition.Update: Here's another version(see C|NET NEWS.COM article)of the story that won't expire so quickly.
TECHDIRT.COM
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Record labels send more letters to P2P services
Published: September 15, 2005, 9:56 AM PDT
By Dawn Kawamoto
Staff Writer, CNET News.com
The Recording Industry Association of America has sent letters to seven peer-to-peer companies, asking them to halt what the RIAA alleges is their practice of encouraging users to illegally distribute copyrighted material.
The RIAA's actions follow a U.S. Supreme Court ruling in June against P2P services provider Grokster and marks one of the first actions the recording industry trade group has taken against P2P services beyond Grokster. In a unanimous decision, the court said companies that build businesses with the active intent of encouraging copyright infringement should be held liable for their customers' illegal actions.
"Companies situated similarly to Grokster have been given ample opportunity to do the right thing," a RIAA spokesperson said. "Those businesses that continue to knowingly operate on the wrong side of that line do so at their own risk."
The letters were mailed to seven file-sharing companies, according to a RIAA spokesperson, who declined to identify the companies.
Companies such as eDonkey, LimeWire and Kazaa were viewed as potential targets of litigation after the Supreme Court ruling because of their unrestricted file-swapping services. Under the court's decision, these companies could face the additional burden of demonstrating that they were not encouraging users to circumvent copyright laws.
In a copy of the letter obtained by CNET News.com, the RIAA states: "We demand that you immediately cease-and-desist from enabling and inducing the infringement of RIAA member sound recordings. If you wish to discuss pre-litigation resolution of these claims against you, please contact us immediately."
Previous Next The letter, dated Tuesday, Sept. 13, goes on to say that the U.S. Supreme Court decision involving Grokster applies equally to the company and certain individuals at the company.
Other companies in the peer-to-peer file-swapping market include i2Hub, BitTorrent, WinMX and Free Peers, maker of file-swapping software BearShare.
BearShare, WinMX and LimeWire were identified in a Wall Street Journal story as recipients of the letters.
LimeWire declined to comment, and Free Peers did not return phone calls. WinMX representatives could not be reached for comment.
Following the U.S. Supreme Court ruling, the RIAA has been diligently filing lawsuits against alleged copyright violators. Last June, RIAA filed lawsuits against 784 individuals and just last month issued another round against 754 individuals.
C|NET NEWS.COM