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Extra!
File-swappers may be safe -- for now
Music industry can't force Internet providers to hand over customers' names unless it sues, a court rules. The industry vows to continue its campaign, but others breathe a sigh of relief.
By Reuters
In a surprise setback for the beleaguered recording industry, a U.S. appeals court ruled Friday that record labels cannot force Internet service providers to name customers who illegally copy music online.
Existing copyright law does not allow record labels to force Internet providers to turn over customer names without a formal lawsuit, the court said, adding the industry's legal argument ''borders upon the silly.''
The decision complicates the recording industry's efforts to stamp out the online traffic in copyrighted songs over ''peer to peer'' networks like Kazaa, a practice the industry says has contributed to plummeting CD sales.
Music industry says campaign will go on
The Recording Industry Association of America has reached out-of-court settlements with at least 220 Internet users after tracking their activity online and forcing Internet providers to turn over their names.
The trade group will continue sue those it suspects of copyright violations but will not be able to warn them beforehand, an RIAA official said in a statement.
''Regardless of this decision, we will continue to defend our rights online on behalf of artists, songwriters and countless others involved in bringing music to the public,'' said RIAA President Cary Sherman.
Verizon Communications challenged the practice last year, arguing that a 1998 copyright law does not require it to turn over customer names without a lawsuit.
A lower court earlier this year upheld the recording industry's tactics, and the appeals court declined to halt the practice while it considered the case.
'Digital online fishing expedition'
But in a strongly worded ruling, the appeals court sided with Verizon, saying a 1998 law does not give copyright holders the ability to subpoena customer names from Internet providers without first filing a formal lawsuit.
''In sum, we agree with Verizon that (the law) does not by its terms authorize the subpoenas issued here,'' Chief Judge Douglas Ginsburg wrote.
The recording industry's ''digital online fishing expedition'' violates customer privacy and due-process rights, said Sarah Deutsch, a Verizon vice president and associate general counsel.
''Verizon is definitely interested in working with all of the copyright community in finding ways to stop piracy, but we have to do it in a way that supports the balance between users' rights and the rights of the copyright holder,'' Deutsch said.
The RIAA did not provide immediate comment.
Saved from themselves?
An independent copyright expert said the recording industry will have to meet a higher legal standard before filing lawsuits against users in the future -- which could avoid further public-relations embarrassments such as the 12-year-old girl who was one of the first to be sued.
''In some ways it's kind of a mixed blessing for the recording industry, because they're not going to end up having the grandma in Massachusetts who is accused of having Linkin Park and hip-hop music on her computer,'' said Gigi Sohn, executive director of Public Knowledge, a Washington think tank.
RIAA members include Vivendi's (V, news, msgs) Universal Music Group; Time Warner (TWX, news, msgs)'s Warner Music; EMI Group; Sony's Sony Music and Bertelsmann's BMG.
Sony Music and BMG have announced plans to merge, while a private group of investors is in the process of buying Warner Music.
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