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Criminal copyright charges against P2P group

OUT-LAW News, 26/08/2004

The US Justice Department yesterday took its first federal enforcement action against criminal copyright piracy on peer-to-peer networks, executing search warrants and seizing computers, software and other equipment.

The target – at least on this occasion – is not the individuals who use the most popular networks like Kazaa and Grokster; rather, it is focused on the users of five peer-to-peer networks that belonged to a group known as The Underground Network, using a community-based P2P system called Direct Connect.

"The execution of today's warrants disrupted an extensive peer-to-peer network suspected of enabling users to traffic illegally in music, films, software and published works," said Attorney General John Ashcroft.

"The Department of Justice is committed to enforcing intellectual property laws, and we will pursue those who steal copyrighted materials even when they try to hide behind the false anonymity of peer-to-peer networks," he added.

The six search warrants followed a joint investigation conducted by the FBI, the Office of the US Attorney for the District of Columbia, and the Justice Department's Computer Crime and Intellectual Property Section. Five residences and one ISP in Texas, New York, and Wisconsin were searched and equipment seized.

Known as Operation Digital Gridlock, they targeted the illegal file-sharing of copyrighted materials over the networks that belonged to The Underground Network.

According to search warrant affidavits unsealed yesterday, these networks required users to share "a minimum of one to 100 gigabytes of computer files" with other users on the network. Upon becoming a member of one of these peer-to-peer networks, each user could then download shared files from the hard drives of all other members on the network.

Theft through the illegal reproduction and distribution of movies, software, games, and music is estimated to cost US industries $19 billion worldwide each year, according to the Justice Department.

The US entertainment industry, led by the Recording Industry Association of America (RIAA), has been trying for years to counter the piracy.

Civil legal actions against the networks, file-swappers, the creators of software that circumvents security features, and the purchasers of that software have all been filed, with varying degrees of success. The industry has also been lobbying hard for the introduction of laws that will more fully protect it from copyright abuses.

But until now, enforcement agencies have been unwilling to get involved, despite having the powers to do so. The actions announced yesterday may represent a change in attitude.

"Today we are sending a clear message that federal law enforcement takes piracy seriously," said US Attorney for the District of Columbia, Kenneth L Wainstein. "It is illegal to trade in copyright-protected materials on the internet. This is theft, plain and simple. If you are engaged in this behavior, you are on notice that you are not as anonymous as you may think."

The investigation is ongoing.

 

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