The legality of file sharing services
In this arena, however, the industry must work without one of its favorite weapons. File sharing networks just move bits around, they do not actively circumvent any sort of copy protection mechanism. As a result, they are not exposed to the anti-circumvention clauses of the DMCA. So file sharing networks must be fought with traditional copyright law. As last week's ruling in the Grokster et al. case (available in PDF format) shows, the studios are going to have a harder time. File sharing networks, when properly constructed, are legal.
What are the attributes of legal file sharing software? From this ruling, one concludes that such software must (1) have real non-infringing uses, (2) not be based on a central server architecture, and (3) not provide for control over what can or cannot be distributed through the network.
The court was quite clear that the simple potential to infringe copyrights was not enough to condemn the software or the companies distributing it:
Lawful uses of the software would not be enough, however, if the companies were actively involved in the distribution of copyrighted materials. The saving factor for the defendants here was that they do not maintain any sort of central server or index of the files available in the network, and are not involved in actual file transfers.
Just as relevant is the fact that the the defendants had no control over what their users were sharing:
This is a lesson which has been taught by the American courts more than once: control brings liability. If you do not have control over a system, you have a defense against liability for what others do with that system. There is no more convincing way of relinquishing control than by releasing the software under a free license.
The plaintiffs put forward the claim that better control should have been put into the defendants' software. The court did not buy it, however:
Current law, in other words, does not require that products be made in such
a way that they cannot be used to infringe copyrights. Ed Felten has speculated
that the entertainment industry will soon make efforts to change the law.
This would be an unsurprising move, to say the least; that is, after all,
what the CBDTPA would do. As one LWN commenter pointed out, pressing for that
sort of law would break the RIAA's agreement with the BSA, where it said it
would not push for further anti-copying measures. Relying on that
agreement to hold sounds risky, however; chances are good that there will
be new legislative efforts in the near future.
