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published 25 May 2000

Inevitable technology
by Dylan Tweney

Napster is all but dead. And so too may be the notion of defensible intellectual property, thanks to a new network called Freenet.

Sure, Napster just got $15 million and a new CEO from VC firm Hummer Winblad [1]. But mark my words: Napster is not only in trouble, it's already obsolete.

Napster has been forced by Metallica to disconnect the accounts over over 300,000 users who, the band alleges, have been trading copyrighted recordings of the band's songs using the Napster network.

Other legal trouble is surely in the wings. A host of recent copyright-related lawsuits (RIAA vs. Napster, MPAA vs DeCSS, Microsoft vs. Slashdot) have targeted Web sites and software developers, making life very difficult for anyone whose business model is based on trading other people's information. [2]

Even the gurus of open source software are lining up against Napster. "Piracy is bad," Linus Torvalds has said. "Of course you should be able to sue over copyrights." [3] (Note that Torvalds holds a trademark for the word "Linux.")

A hint of things to come for Napster: MP3.com was recently found liable for copyright infringement in a suit brought by the Recording Industry Association of America, which was upset that the music-trading site was offering free downloads of copyrighted songs.

As a result of that suit, MP3.com no longer provides free access to copyrighted songs. The company is crowing about its success in getting people to pay a $10 monthly fee for unlimited access to streaming media feeds; MP3.com pays royalties to record labels out of those fees. Still: this is on MP3.com's Classical Music Channel. As if that's a huge moneymaker. [4]

Napster is in a similar position. As long as the company provides access to copyrighted recordings -- even if it doesn't host the MP3 files itself -- it is vulnerable to lawsuits. Today it's Metallica and Dr. Dre, tomorrow it's everyone from Bob Dylan to Britney Spears. Eventually, the company will have to start paying royalties to record labels whose songs it distributes, and to make that work, it will have to generate substantial revenues from its downloads.

Perhaps Napster has enough momentum to switch over to a for-pay model, enabling it to pay royalties to copyright holders? A new study found that 57% of U.S. college students use Napster at least once a week. 70% of them use it monthly. And the study hints that most of them would be willing to pay $15 per month to use the service. [5]

Don't bet on it.

Already there are a host of alternative technologies that do what Napster does, cost nothing, and are far less susceptible to legal action. (It would have to be a pretty dumb college student who would spend their pizza and beer money on something they could get elsewhere for free.) For example, OpenNap provides an open-source version of the Napster database. Gnutella is a file-sharing program designed to distribute any kind of file, not just MP3s. And there are many others, as reports from Wired and C|Net make clear. [6,7]

One of the most interesting new file-sharing networks is Freenet, which is designed to be a completely decentralized, anonymous, information-sharing network. There is no central registry of files, no centralized addressing scheme. Once a file or piece of information is posted to Freenet, it is automatically propagated to other Freenet nodes. As a result, it is difficult, if not impossible, to determine the locations where a piece of information is physically stored -- and it's therefore nearly impossible to remove any information once it has been introduced into Freenet. What's more, information can be posted and retrieved anonymously, making it hard to catch anyone responsible for posting something -- or those who download that information. [8]

Freenet aims to be nothing less than a completely unfettered alternative to the Web. On the Web, sites can be blocked or taken down entirely, and domain names can be taken away, enabling authorities to shut down or turn off sites that they judge to be illegal, immoral, or simply objectionable. Freenet makes such controls nearly impossible, short of an across-the-board crackdown on network technology.

There are some obstacles to Freenet's success: For instance, the system currently lacks any kind of search capability, meaning it is very difficult to find anything unless someone gives you a specific Freenet address. As long as it lacks a search tool, Freenet won't be especially useful to a broad base of users.

Nevertheless, Freenet is a clear shot across the bows of intellectual property. With such a network, there is effectively no way to prevent the unlimited, worldwide distribution of any kind of information -- articles, books, music, videos, even software. Copyrighted or not, intellectual property can be introduced into Freenet anonymously and irrevocably.

Is this a good thing? It depends on who you ask. People who make their living from intellectual property (and I count myself in that group) are likely to be very nervous about something like Freenet, because it takes away any leverage that the creators of content currently hold. Others, who believe in freedom of speech (I also count myself in this group) see Freenet as a way to circumvent censorship, distributing information wherever and whenever it is wanted. If you believe "information wants to be free," you'll love Freenet.

In the end, your opinion may not matter. The technology is here, and no doubt other similar technologies will soon follow. Technological development follows something very akin to Murphy's Law: Anything that can be invented, will be.

So the recent flurry of copyright-related lawsuits may turn out to be futile in the face of such seemingly inevitable technologies. That doesn't mean we should stop asking questions about what whether the technology is moral or not. And the legal battles over copyright have barely scratched the surface of the technologies involved.

One person who has been able to think "ambidextrously" about these technologies and their social implications is Andy Oram; see his essay on the social impact of Gnutella and Freenet [9] and his excellent technical overview of the two technologies [10].

The question is, has intellectual property become obsolete? Or can the producers of content -- words, music, software -- still find ways to generate value from their efforts?

---

[1] Napster gets new CEO, $15 million infusion

[2] Copyright clash: Boundaries of legality

[3] ZDNet: News: Linux leaders: Beware of Napster

[4] MP3.com Reports Strong Subscription Service Demand

[5] Napster University: File Swapping and the Future of Entertainment
(press release)

[6] Napster May Not Matter Any More

[7] Music may be only the beginning of grassroots piracy

[8] The Free Network Project Homepage

[9] The Value of Gnutella and Freenet

[10] Gnutella and Freenet Represent True Technological Innovation

 

 

 

 

 



The presentations I delivered last week at Web Commerce 2000 in Las Vegas are now on my Web site. "Shopping Carts: Implementation and Interface" and "Tracking Users: Analyzing How People Use Your Site" are both available at the following URL:

http://www.tweney.com/presentations/

You can also find links to many of my other presentations at this URL. All are available in HTML and PowerPoint versions.

   
 

~ Back issues ~

Lower your expectations: Layoffs at startups continue, as venture capitalists begin investing more cautiously; what's your upside?; B2B marketplaces step up press release production (15 May 2000).

Sue your customers: Metallica is on a mission to stop Napster users from stealing its intellectual property; can the Net survive? (8 May 2000).

Fundamentals lost and found: April's tech stock shakeout is focusing new attention on business funamentals, to the detriment of IPOs and portals (2 May 2000).

The whole dang archive...

   
       
 
 
 
 
 
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