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HSFPP Weekly Update # 126—Revisiting File Sharing  

Message from Bob & Chris: The Recording Industry Association of America (RIAA) is still suing consumers, most notably college students, for music file sharing; and now they are being joined by the Motion Picture Association of America (MPAA), which is concerned over file sharing of movies. Much of the file sharing the industry is trying to stop is illegal, but many people see it as the wave of the future and blame the industry for suing their own customers. Whether the music and movie industries are only doing what is right or refusing to face reality, music and movie fans must choose their own actions carefully. Getting sued by the RIAA or the MPAA can put a serious dent in any high school or college student’s financial future. In addition, criminal proceedings could result in jail time and reduced career prospects. Even without jail, though, parents will not be pleased when they have to pay the bill for damages.

We’ve only dealt with this subject once before, in September 2003, so we thought it was time for a follow-up.

 

Related Updates:

Update #66 - Music File Sharing - 22 September 2003

 

Website Pick of the Week:

http://www.poznaklaw.com/articles/netact.htm

This Web site, from the Poznak Law Firm in Oak Brook, IL, has a good explanation of the Net Act, which made it illegal to reproduce and/or distribute copyrighted digital material such as software and music files.

 

Activity for Educators:

 Have students read this week’s article In the New$.... Then use the discussion questions below. This lesson is particularly valuable for educators who teach a section on ethical behavior and who must help teenagers understand the law. In our new index (nearly ready to be posted) this week’s update comes under the section titled, “Ethics and the Law.” With the new index it should be much easier for you to locate additional archived updates related to topics of interest.

 

In the New$....Campus File Swappers to Pay RIAA

 “Four university students on Thursday agreed to pay thousands of dollars each to settle online music piracy charges, ending the record industry's most aggressive thrust yet against individual file swappers.

“The Recording Industry Association of America (RIAA) sued four students separately last month for running services that searched computers connected to their college networks for MP3 song files. The students also shared copyrighted music from own machines. The lawsuits marked the first time that the RIAA directly sued students, as opposed to companies, associated with peer-to-peer piracy.

“The settlements will see each student making payments to the RIAA totaling between $12,000 and $17,000, split into annual installments between 2003 and 2006. The lawsuits as filed could have entailed damages (in theory) of up to $100 million.

“‘The record companies indicated right from the beginning that they were amenable to settling this case,’ said Howard Ende, a Drinker Biddle & Reath attorney who represented defendant Princeton sophomore Daniel Peng. ‘In my view, this was not about Daniel Peng, per se, but was a utilization of the legal system to make a point—essentially to intimidate Internet users.’

“The lawsuits—on top of a series of communications that the RIAA and other copyright holders have had with universities over the past year—have led to a crackdown on campus file swapping and the kind of network search tools created by Peng and the other students.

“College officials recently reprimanded a large group of students at Pennsylvania State University for using or operating similar services. This week, the New Jersey Institute of Technology banned the use of file-sharing software on its campus, citing the danger of lawsuits, according to The Chronicle of Higher Education.

“Also last month, Naval Academy officials said they had disciplined a group of 85 students who were allegedly caught using campus resources for file sharing.

“Despite the settlements, the students did not admit any guilt.

“‘I don't believe that I did anything wrong,’ 18-year-old Peng said in a statement. ‘I am glad that the case has been settled amicably, and I hope that, for the sake of artists, the larger issues can soon be resolved.’

“In their suits against Peng and the three other students, the RIAA called the services they had created ‘mini-Napsters.’ Ende said that Peng, as well as his attorneys, believed that the service he had run was more like Google than Napster, since it had simply searched computers that were hooked up to the campus network, whether or not they contained his software.

“As part of their settlements, the students agreed not to knowingly infringe the record label's copyrights while using the Internet. They will also shut down their network search services. Peng's attorneys said he will instead provide links to a record industry Web site.

“‘We believe it's in everyone's best interest to come to a quick resolution, and that these four defendants now clearly understand the seriousness with which we view this type of illegal behavior,’ said RIAA Senior Vice President Matt Oppenheim in a statement. ‘We have also sent a clear signal to others that this kind of activity is illegal.’

“The RIAA said that any future similar enforcement actions could lead to ‘stiffer settlement obligations.’”

Source: “Campus file swappers to pay RIAA,” by John Borland. From CNET Networks.
http://news.com.com/2102-1027_3-999332.html?tag=st.util.print

 

Activity for Students:

Discussion Questions

1. If CD prices were lower ($6 - $9), would file sharing be such a problem to the RIAA? Yes___ No___
   
   
2. Has news about file-sharing lawsuits convinced you to stop using free file-sharing services like Grokster and Kazaa? Yes___ No___ Why or why not?
   
   
3. What is your opinion of the RIAA and MPAA lawsuits? Are they fair or are they trying to solve the problem the wrong way? Explain.
   
   
4. If you were sued by the RIAA, how could that affect your financial future?
   
   
5. In general, are teens more or less likely than their parents to believe that any unethical behavior is okay unless they get caught? Yes___ No___ Explain why.
   

Kentucky High School Financial Planning Program

http://www.ca.uky.edu/fcs/hsfp

The purpose of this Web site is to assist county extension agents, credit union educators, and high school teachers in improving the economic well-being of our constituency, beginning with today’s students; and also, to assist teachers in Kentucky in meeting KERA’s goal that all students become technologically literate. Weekly Updates are provided by the University of Kentucky Cooperative Extension Service, and are free to all educators.