The Electric New Paper By Eugene Wee
Peer-to-peer (P2P) network companies Grokster and StreamCast Networks may be liable for copyright infringement as they actively encouraged their users to share copyrighted material.

But does this mean that movie studios and record companies can stop worrying about the Internet piracy perpetuated by P2P software?

Experts say this is unlikely.

Industry insiders say the Supreme Court decision will do little to stop illegal file-swapping from continuing.

That’s because in the majority of cases, P2P networks don’t require the support or aid of any commercial venture to flourish.

Miss Wendy Seltzer, a lawyer with US-based Electronic Frontier Foundation, which has represented StreamCast Networks, told CNet News that if both Grokster and StreamCast were to be shut down, their P2P networks will still continue to be operational.

”It operates in a decentralised way,” she said. ”It doesn’t need to call into a home base; it doesn’t need product updates from any place. What’s out there continues to be out there.”

And recent history seems to support Miss Seltzer’s view.

NAPSTER SHUT DOWN

In 2001, the music industry managed to shut down Napster, the pioneer P2P network for music.

However, new software developers came up with next-generation P2P software, which led to an even bigger wave of P2P network users.

Kazaa, which is now owned by Sydney-based Sharman Networks, later became the most downloaded software in Internet history.

File-swapping activities have also been proceeding unabated despite the Supreme Court ruling.

Internet traffic tracker BigChampagne reported that the day after the ruling, the average number of people in the US using file-sharing networks remained unchanged at between 5.2 million and 5.4 million.

While the upcoming lawsuit against Grokster and StreamCast could shut them down for good, others will spring up in their place.

Experts said new P2P networks will continue to pop up as network operators are seldom in it for the money.

Many do it simply to prove it can be done. Others will pitch their file-sharing networks for legitimate uses, such as legal distribition of copyright movies to paying customers.

Also, the ruling affects only companies in the US. Those who want to provide P2P software need only set up shop overseas.

Already, Kazaa has been superceded by BitTorrent, the latest file-sharing system that allows much bigger files, such as movies, to be shared.

So no matter how many P2P companies are put out of business, the technology itself is likely to stay - for better or worse.