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| Gartner Says That Napster's Searchable Directory May Be Dead, But Peer-to-Peer File-Sharing Continues to Grow and Thrive |
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STAMFORD, CONN, February 13, 2000 — In its Napster decision, the 9th Circuit Court of Appeals ruled that creating a centralized directory that facilitates the mass swapping of copyrighted materials is illegal. In doing so, it rejected Napster’s claim that it lacked the technical means to police those directories. However, the most important aspect of the court’s ruling, according to Gartner Group Inc. (NYSE: IT and ITB), was the verdict that peer-to-peer file-swapping services are not illegal, even if such services have the potential to be used for unauthorized exchanges of copyrighted material. According to Gartner, peer-to-peer file-sharing services will thrive as long as they avoid the pitfall of being in a position to know what people are exchanging and being technically able to stop illegal activity.
“Given the court's ruling, and the pace at which peer-to-peer technology is advancing, the music industry has months, not years to create business models that embrace, rather than destroy, peer-to-peer file-sharing,” said Rob Batchelder, Gartner analyst. “'Don't ask, don't tell' is the winning formula as AOL, Aimster and a host of other peer-to-peer file-sharing sites are proving.” “The music industry continues to fight innovation head on,” said Gartner analyst PJ McNealy. “Their energy will be better spent partnering with technology rather than trying to rule it.” According to Gartner, Napster’s design was a primitive one. Napster collected file lists from logged-on users into a searchable directory and made it possible for those users to directly exchange files with one another. They publicly challenged the already paranoid and deeply endangered music industry and lost. However, the music industry did not win. It merely prevailed in a battle against an unsophisticated challenger. Napster replacements such as Aimster are already thriving — and the methods those systems use will shield them from the liabilities Napster faced, according to Gartner. The court also determined that although the “fair use” doctrine allows individuals to make copies of copyrighted material for their own use, it does not allow those copies to be exchanged with others via the Internet. The court further asserted that using a computer to re-record music is not permitted under the Home Audio Recording Act. About Gartner Gartner provides unrivaled thought leadership for more than 10,000 organizations, helping clients achieve their business objectives through the intelligent and efficient use of technology. Additionally, Gartner helps technology companies identify and maximize technology market opportunities. Gartner's technology content and strong brand reach IT professionals globally through Gartner Research, its research and advisory unit; Gartner Services, its custom consulting unit; Gartner Events, including Gartner's renowned Symposia; and, at www.gartner.com. Gartner subsidiary TechRepublic, Inc. (www.techrepublic.com) is the leading online destination developed exclusively for IT professionals by IT professionals. Gartner, founded in 1979 and headquartered in Stamford, Connecticut, achieved fiscal 2000 revenue of $859 million. Gartner's 4,600 associates, including 1,400 research analysts and consultants, are in more than 80 locations worldwide. For more information about Gartner's industry-leading products and services, please visit us on the Web at www.gartner.com. |
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Danielle Westling Gartner 203-316-6754 danielle.westling@gartner.com |
Christy Pettey Gartner 408-468-8475 christy.pettey@gartner.com |
