Peer-to-Peer Under the Gavel

April 1, 2005 — -- 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.

Peer-to-Peer in the High Court

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.

Fred von Lohman, lead attorney for Grokster and StreamCast, argued that the P2P technology has many other beneficial uses aside from distributing illegally copied media files. P2P, say advocates, has helped spread academic research work, public domain information and products created by open collaboration -- new software such as the Firefox Web browser created by the Mozilla organization of programmers, for instance.

"Every month, there are hundreds of millions of perfectly legal, legitimate file transfers going on," said von Lohman. And stifling such a technology, he argued, could put a damper on future innovations if computer engineers and programmer were held accountable to how their inventions may be used to break laws.

Even the justices were having trouble figuring out how to protect copyright laws while still allowing innovation. Justice Stephen Breyer even asked lead MGM attorney Donald Verrilli Jr., why the copyright infringement argument couldn't be applied to other technological innovations such as the iPod digital music player or even a photocopier.

"It's the iPod, and it's not Xerox, it's not any of these legitimate business," said Verrilli. "But if you run a business like Grokster, Streamcast with a vast majority [of users] infringing [copyright], you're putting profits in your pocket based on that infringement, you ought to be on the hook."

The Supreme Court isn't expected to make a final decision regarding MGM v. Grokster until this summer.

-- Vic Ratner, ABC News

Gag Gifts From the Minds of Geeks

It's hard not to believe everything you see or read on the Internet. Computer image trickery and anonymously written, yet authoritative-sounding text could dupe any unsuspecting mark. And that's what ThinkGeek.com, a Web site that sells gifts and items that appeal to computer nerds, hopes will happen this April Fools' Day.

As part of its annual foolery, the Web site will list for sale "a series of amusing and intriguing products that could be real -- but aren't," said site co-founder Scott Smith.

Some examples of almost-real products that fooled some gearheads in previous years:

The PC-EZ Bake -- A miniature oven that could be installed inside a PC, where it would use the heat from the microprocessor to instantly bake treats such as cookies.

The Shrinter -- A combination laser printer and document shredder so computer users can print -- and then shred -- documents in one easy step.

The George Foreman USB iGrill -- A version of the famous electric grill that could download online recipes and be controlled from afar using the Internet.

Smith is mum about most of the phony products that will be featured on the ThinkGeek site this April Fools' Day. But he does note they will be products that techo-geeks will relate to -- and wish were real.

One particular product he does highlight: The "iCopulate," a device that allows two iPods to "mate" and share music with each other. (Current iPods can't share tunes because of legal copyright restrictions.)

The phony products are all meant to poke fun at geeks' lust for the latest techno toys. Indeed, some of the real gadgets offered on ThinkGeek.com may seem silly to non-geeks.

"Ideas come from all kinds of strange places," said Smith. "There've been a lot of real products that have come from science fiction."

Caveat emptor!

-- Karen Chase , ABC News

Cybershake is produced for ABC News Radio by Andrea J. Smith.