Peer-to-Peer Under the Gavel

April 1, 2005 &#151 -- In this week's "Cybershake," we take a quick look at the arguments made before U.S. Supreme Court justices regarding online, peer-to-peer file-sharing software. Plus, in the spirit of April Fools' Day, geeks come up with gag techno-gadgets that don't exist -- yet.

Online peer-to-peer file-sharing technology is finally being put under the legal spotlight. On Tuesday, the U.S. Supreme Court heard arguments in MGM v. Grokster. The lawsuit pits media companies against companies that provide software and technology to freely distribute computer files -- including digital movies and music -- over the Internet.

Hollywood movie studios, record labels and performing artists such as Sheryl Crow, the Dixie Chicks and the Eagles are firmly opposed to peer-to-peer, or P2P. They believe that companies such as Grokster and Streamcast Networks are helping to thwart copyright laws by allowing users to share illegally copied music and movie files online.

"We know that sales are down 20 percent over the past five years -- exactly during the same time period that file-sharing began," said Mitch Bainwol, president of the Recording Industry Association of America. "The real issue here is whether or not bad actors [file sharers] should be allowed to operate."

But defenders say online P2P technology is no more illegal than VCRs, photocopiers or any other similar technology. And like manufacturers of those devices, P2P companies say they have no control over how people will use the file-sharing technology. Some artists, such as Peter Gabriel, rapper Chuck-D and Wilco have even used online technology to distribute new songs and gather new fans.

Michael Weiss, chief executive officer of Streamcast Morpheus, believes the entertainment industry's attack on P2P is similar to the initial attempt to thwart radio broadcasts more than 70 years ago.

"Time and time again, they've cried wolf, the sky is falling," said Weiss.

Instead of fighting the technology, he said, Hollywood should embrace the online technologies and work with the computer companies to develop new distribution and marketing methods.