Movie and record producers alike are saying file-sharing networks that permit its users the ability to make copies from other network member’s computers are infringing on the copyright laws and costing billions of dollars in lost revenue.
The recording industry claims to have lost 25% of it’s revenues since computer, so called thieves, have been using peer-to-peer file-sharing networks to obtain free music downloads.
The two latest file-sharing companies to be targeted by these copyright lawsuits are Grokster Ltd, known for its Grokster file-sharing software and StreamCast Networks Inc. from which the Morpheus free music downloading software is distributed.
Unlike Napster, Grokster and Morpheus put a spin on the popular file-sharing phenomenon. Instead of indexing the shared files like Napster did, these file-sharing products enables it’s network members to build their own indexes – thus allowing others within the network to download free music and movie files.