The film industry has reacted by seizing illegal DVDs, initiating legal action and introducing various software solutions. There are limits to each of these routes, and the industry’s focus must expand to include soft copy theft.

Traditionally, film studios have focused on trying to eliminate hard copy piracy. The UK’s Federation Against Copyright Theft (UK FACT) publishes quarterly reports on the number of DVD seizures, which show rapid growth over a 15-month period.

The industry has also fought back using litigation and software solutions. Additional technical solutions are also under review, but no ‘silver bullet’ exists. A number of high profile cases, such as against the music site Napster, have been brought by the entertainment industry, and set important precedence for the movie business.

The ruling against Napster demonstrated that legal action could be effective when the content and the infrastructure that enabled piracy to occur could be clearly identified. The issues at stake regarding Napster extended beyond piracy, and included the impact of online distribution channels for intellectual property. Though Napster was eventually shut down by the injunction, the music world saw the potential of online music sales and media giant Bertelsmann tried to acquire it. Napster was eventually acquired by CD-burning firm Roxio for $5.3m.

Initial attempts to crack down on peer-topeer (P2P) networks have been thwarted by lack of accountability. In April 2003, it was ruled that P2P software companies Streamcast and Grokster were not liable for copyright infringements that took place using their software. However, more recently Universal has been successful in anti-piracy action against an individual. This trend towards high-profile, individual cases looks set to continue, and forms an important part of anti-piracy strategy.

A likely future target is internet Service Providers (ISPs), whose infrastructure is used by P2P networks. In June 2003, US telecommunications company Verizon was forced to hand over the names of four subscribers who allegedly downloaded pirated music. The Recording Industry Association of America (RIAA) has sent them ‘cease and desist’ letters to stop them offering downloadable music for free.

Recently, the music industry started issuing federal subpoenas against individuals who have illegally downloaded large amounts of music through P2P, and expects to file at least several hundred lawsuits seeking financial damages and using these lawsuits as a deterrent for others illegally downloading music from the internet. 

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