File Sharing

File-sharing legality
still in question in digital age

February 24, 2004

DES MOINES, Iowa -- The concept of file sharing on computers isn't one that needs explaining. Many Iowans likely have even participated in the activity of downloading music, movies or other files right from their own living room.

What many don't realize is how they were only hurting themselves. During the prime days of Napster, before the current crackdown by the recording and film industries, file sharing was costing Iowans both money and jobs.

"The information technology professionals in the three branches of government have had anti-piracy programs in place for several years," said Tom Shepherd, executive officer of the Department of Administrative Services' Information Technology Enterprise Department. "This is to prevent the unlawful copying of computer software."

Tina Hoffman, Iowa Department of Economic Development communications director said that no direct studies have been done by the department, but she is sure that file sharing does have an ill-effect on the economy.

In 1999, the state projected a loss of $97 million in the state's economy due to software piracy alone. Even 1,800 jobs within Iowa were lost due to the budget effects from software sharing. This doesn't even include the revenue or taxes lost to music or movie piracy.

Former Iowa economist Harvey Seigelman said it is hard to quantify any economic impacts that online copyright infringement has had.

For Iowans who plan to continue downloading copyrighted files, they can expect to see it take a bite out of their personal budget with the number of lawsuits being filed by the Recording Industry Association of America and the Filming Industry Association of America on the rise.

The state itself does not have much impact on the laws and suits created by file sharing since the copyright laws are provided by the federal government, according to Bob Brammer, spokesman for the attorney general's office.

With the biggest effect of the lawsuits possibly on college students, many universities around Iowa including Iowa and Iowa State have issued e-mails to students asking them to beware of what copyrighted files they download.

"In addition to the unknown origin of the content from many of the Internet file-sharing services," Shepherd said, "there is a greater than normal exposure to downloading computer viruses from such services."

One main reason for students to be wary of their actions is now most universities download records are obtained by copyright protection agencies. These agencies, such as MediaSentry Inc, can then traced individual offenders that obtain copywritten files.

While those downloading copyrighted material can be prosecuted under copyright infringement laws, individuals promoting illegal forms of file sharing by providing the files are subject to prosecution under the No Electronic Theft Act.

Both the recording and filming industries have attributed billions in potential revenue lost each year to copyright violation.

However, legal forms of file sharing can help stop the drain on the state's economy.

iTunes, a legal music sharing network developed by Apple, has many previously copyright offenders now paying a minimal charge to download songs that covers the costs of the service.

Another form of benefits provided by iTunes is networking. By connecting within a network of computers, users can listen to each other's library of legally obtained music. However, to avoid copyright issues, the songs listened to cannot be downloaded to the user's own hard drive.

File sharing also has its impact in ways other than entertainment. Many departments and businesses across Iowa can use the idea to share documents and information across a network.

Not all forms of file sharing are detrimental or unnecessary, however. The Iowa Department of Administrative Services is responsible for updating and transferring government documents and studying the technological advancements of Iowa.

Using the concept of file sharing within the government network, the department is able to move these documents in a secure fashion and avoid sharing the files with unauthorized personnel. This protection is necessary is keeping confidential files from being obtained on a public file-sharing network.

"Employees generating and handling confidential information are subject to confidentiality agreements," Shepherd said. "Also, the government is bound by a number of information privacy and security laws."

Document-sharing applications such as E-Files allow departments like these to store confidential information and later send the file across a secure network. For even more convenience, these applications make the files accessible from anywhere, yet maintain a secure lock on them.

File sharing has benefits that can be used by everyone across the state in some form. However, in a still young digital age, a clear line of legal and illegal forms has yet to be determined.