File Sharing

A lot of stuff goes on the internet. People shop extensively online. They register for and even take classes online. People do research online, and they conduct legal work online. People advertise online, and they communicate online. The internet has allowed people to expand what they can do and how fast they can do it. Most of the stuff that goes on on the internet is legal. However, there are illegal things that go on on the internet. For example, people hack into others computers. They send viruses to unsuspecting internet users. A lot of fraud also occurs over the internet.

One of the largest crimes that occurs over the internet is illegal file sharing. Illegal file sharing is the exchange of things like television shows, movies, music, and software. People use programs like Kazaa and Limewire to exchange such files. The volume of file sharing on the internet is extensive. Indeed, one study estimates that illegal file sharing has cost record companies around $6 billion over a four-year period, from 1999 to 2003. Additionally, some say that CD sales have also been negatively affected. The Wall Street Journal reported that in 2007 CD sales had dropped around 20% since the previous year. The movie industry has also suffered. Movie studios estimated that in 2005 they lost about $2.3 billion to illegal file sharing. However, this number has been alleged as being too high. Finally, even software exchanging has boomed. Some have estimated that around 25% of all software has been illegally exchanged.

Illegal file sharing over the last 10 years or so has gone through a variety of stages of evolution. Initially, it was based on servers, which held files to be exchanged. If the servers were seized by law enforcement, then files could no longer be exchanged. Then, file sharing went into a different state. It occurred through decentralization. After that, it went through a stage where it would be done indirectly and encrypted. File sharing of this types hides the identities of the individuals exchanging files. The most recent stage of such evolution has been peer-to-peer networks, whereby servers are not even involved and people exchange files directly.

Penalties and prosecution for illegal file sharing is severe. The FBI has faced heavy pressure from the movie and recording industries to clamp down on illegal file sharing. In fact, large numbers of people--though nowhere near a majority--who exchange files have been caught. Aside from criminal prosecution, they have also faced civil suits from record and movie companies.