KaZaA vs the world – digital downloads vs legal eagles

Sharman Networks, the owners of the KaZaA P2P file-sharing software, has been sued by a collection of record companies in a civil case in Australian courts. The company is under pressure as the record companies are claiming that KaZaA was responsible for rampant piracy and file sharing of coyrighted product.

At the same time, on the other side of the world, record companies are buying into and initiating strategic alliances with file sharing software companies.


“Share and share alike, I say”

How the hell do these record companies make any sense? They don’t! I’ve said it before and I’ll say it again – file sharing is the best thing to happen to the music industry in years. It has encouraged passion about music again. What is this Christmas’ hottest gift? The iPod! what do people do with their iPod? Listen to music!

The problem with the music industry isn’t that people aren’t paying for music, it’s that they keep merging and releasing less artists of lower quality – therefore people couldn’t give a toss.

As a side topic, part of the defence argument from Sharman Networks is that file swapping per se is legal in the US, where 98 of users reside. It’s an interesting point – it is legal to swap files, but illegal to actually break copyright laws. Let’s hope the Supreme Court of New South Wales follows the precedent set in the Betamax cases where VCR manufacturers actually advertised that people should buy their VCRs based on the fact that they could duplicate tapes. The court found that while the act of copying was illegal, the VCRs had a legitimate use therefore could not be made illegal.

Either way, it shows how out of touch the record companies are – they sue KaZaA and another one will pop up in its place: Acquisition, Limewire, et al. To paraphrase Princess Leia: the more they squeeze the more file sharers will slip through their fingers.

Sadly, I imagine this is how companies will behave as digital distribution eats their business model. Sue, block or lobby to stop their competitors from taking away their cosy business model and replace it with something consumers much prefer.

Constantine Frantzeskos

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