Ramping Up #1: DOJ Raids 5 Residences Sharing Files

> http://news.yahoo.com/news?tmpl=story&cid=582&u=/nm/20040825/wr_nm/crime_internet_dc&printer=1


U.S. Raids Net Song Swappers in Copyright Crackdown

 Wed Aug 25, 3:56 PM ET


By Peter Kaplan and Andy Sullivan 

WASHINGTON (Reuters) - U.S. agents have raided the homes of five
people who allegedly traded hundreds of thousands of songs,
movies and other copyrighted material over the Internet, Attorney
General John Ashcroft (news - web sites) said on Wednesday. 

Agents raided residences in Texas, New York and Wisconsin early
on Wednesday and seized computers that they suspect were involved
in a nationwide file-trading network. 

The raids marked a sharp escalation of the years-long legal
battle surrounding unauthorized copying over peer-to-peer, or
P2P, networks. 

Until now, the Justice Department (news - web sites) has only
pursued elite groups of hackers who steal and distribute movies,
music and software before their official release dates. 

Authorities made no arrests. But Ashcroft warned that those who
copy music, movies and software over P2P networks without
permission could face jail time. 

"We do not believe it is appropriate for the Department of
Justice (news - web sites) to stand by while such theft is taking
place," Ashcroft said at a press conference. 

"P2P does not stand for 'permission to pilfer,"' Ashcroft said. 

Targeted in the raids were people operating "hubs" in a
file-sharing network based on Direct Connect software. 

An official at Direct Connect parent NeoModus Inc. was not
immediately available for comment. 

In order to join the network, members had to promise to provide
between one and 100 gigabytes of material to trade, or up to
250,000 songs, Ashcroft said. 

"They are clearly directing and operating an enterprise which
countenances illegal activity and makes as a condition of
membership the willingness to make available material to be
stolen," he said. 

Each of the five hubs contained 40 petabytes of data, the
equivalent of 60,000 movies or 10.5 million songs, Ashcroft said. 

Among the files offered on the network were the movies "Kill
Bill," "Lord of the Rings -- The Two Towers," and "The Last
Samurai," according to an affidavit filed in connection with one
of the search warrants. 

Agents also searched an Internet service provider, but officials
declined to specify which one and said it was not a target of the
investigation. 

Recording studios have waged an aggressive legal campaign against
the networks and their users, but have also appealed to the
Justice Department for help. 

An appeals court in California affirmed last week that such
networks can't be held responsible for illegal copying. 

Record labels have brought more than 3,000 copyright lawsuits
against individuals since last year, typically winning
settlements of around $5,000. 

The Recording Industry Association of America (news - web sites)
on Wednesday announced it had sued another 744 individuals and
refiled suits against 152 others who had ignored or declined
offers to settle. 


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