E-warnings Hit P2p Users

A Billboard staff report



LONDON—"Warning: It appears that you are offering copyrighted music to others from your computer."

Users of peer-to-peer services (P2P) who are suspected of distributing copyrighted music without authorization have begun receiving e-mails with a similar warning.

The cautions, instituted Aug. 14, are part of an action plan undertaken in four countries to tackle illegal distribution of music on the Internet.

Music industry organizations in Australia, Canada, Denmark and Germany have begun sending out the messages, informing P2P users of the dangers of unauthorized file sharing and reminding them that the distribution of copyrighted music without permission is illegal.

The messages are tailored for specific audiences in their respective countries. They also emphasize that unauthorized file sharing affects the livelihoods of people in the music community.

The Canadian message, sent by the Canadian Recording Industry Assn. (CRIA), states: "While we appreciate your love of music, please be aware that sharing copyrighted music on the Internet without permission from the copyright owner is illegal. Victims from this process are the artists, songwriters and musicians who create the music and the other talented individuals who are involved in bringing you the music."

The CRIA message continues: "More than 40,000 Canadians work hard producing and supporting the music you appear to enjoy, including producers, engineers, retailers, music publishers, distributors, manufacturers, record companies, concert promoters and broadcasters. When you break the law, you risk legal penalties. There is a simple way to avoid that risk: Don't distribute music to others on a file-sharing system like this. For further information please go to www.cria.ca. Remember: You need music, and music needs you."

Jay Berman, chairman/CEO of the International Federation of the Phonographic Industry, says the project is "the next logical step" in the industry's campaign to raise awareness on these issues. He adds that additional countries "will follow" in the campaign.

"This initiative responds directly to what we keep on hearing all the time from people who are using the Internet to distribute music. They say: 'We did not know it was illegal.' Well, it is illegal, and we send them a polite notice reminding them that it is illegal," Berman tells Billboard.

Earlier this year, the IFPI developed an educational approach as part of a global plan to raise awareness of the issue. As part of its awareness project, the IFPI mailed Copyright Use and Security Guides to thousands of companies, government offices and educational institutions in more than 20 countries. In May, it launched, alongside other music organizations, a "pro-music" Web site, providing online information about legitimate music worldwide on the Web.

Meanwhile, CRIA launched Value of Music, a campaign to educate the Canadian public that the downloading of digital music from unlicensed P2P services has had a significant impact on the Canadian music business. The campaign came after studies indicated that there was a lack of consumer awareness about the illegality of unauthorized downloading.

Brian Robertson, president of Toronto-based CRIA, emphasizes that the new global instant messaging (IM) initiative is the second phase of CRIA's educational program.

The messages are sent through P2P networks' own IM function, which is accessible by any user of these services. Berman says IM is an effective way of communicating with online music fans.

"We're trying to take advantage of all the tools available to address the issues," he says. "If you are using a P2P service, you make yourself available for such action."

Berman adds that this initiative could reach "several million" P2P users around the world and will include users of such file-sharing services as Kazaa, Grokster and Gnutella.

"Our message will be going to users of file-sharing services, including Kazaa," Robertson confirms. "Anybody on Kazaa is going to get this message."

Like CRIA, the Australian Record Industry Assn. (ARIA) is targeting Australian users of the Sydney-based Kazaa, using its own 12-line message. It explains, among other things, that illegal downloading is copyright infringement and that it hurts the artists. It also stresses that file sharing is not a victimless activity.

Last month, Australia's first survey on downloading and CD burning sent alarm bells ringing. It estimated that 3.6 million Australians illegally burned a CD in a six-month period, while 3.4 million illegally downloaded music files from file-sharing services. The activity was highest in the under-25 age group, and only 35% of this group considered it to be stealing.

But unlike the U.S. music business, the IFPI and the four countries involved are not planning legal action against P2P users at the moment.

"We have not taken this step yet, even if we don't rule it out," Berman says. "It will have to be decided by each national organization and take place within each country's legal system."

ARIA CEO Stephen Peach says his group hopes legal action will not be necessary. "The negative impact of file-sharing networks is presently not as severe in Australia as it appears to be in the U.S., but we are concerned that it may end up that way if community attitudes remain unchanged," he says.

This stance has been applauded by Internet companies, which argue that Australian record labels should woo consumers from illegal sites to legal sites with value-added bonuses and competitive pricing.

Kevin Bermeister, Sydney-based president/CEO of P2P network Altnet, warns that any moves by the Australian record industry to prosecute consumers would become a political issue. "Keep attacking the freedom of technology and the freedom of speech, and the broader community will become involved," he says.

Robertson is equally cautious about "a third phase" that would include litigation. "We haven't determined yet [if there'll be legal action]," Robertson says. "We're still observing what's happening in the U.S. What we are doing is putting individuals on notice that what they are doing is illegal."



Additional reporting by Emmanuel Legrand and Christie Eliezer in Sydney and Larry LeBlanc in Toronto.