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Illegal downloading fight targets corporations

Memo warns companies of employees' downloading actions

Memo warns companies of employees' downloading actions

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Record companies are desperately seeking solutions for a steep decline in music sales, which they say is caused by piracy and the economic downturn. CNNfn's Peter Viles reports.
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LOS ANGELES, California (AP) -- Movie studios and record labels are taking their case against illegal Internet downloads directly to corporations, where much of the offending action allegedly occurs.

The Recording Industry Association of America and the Motion Picture Association of America are sending a six-page brochure this week to Fortune 1000 corporations with suggested policies -- including a sample memo to workers warning them against using company computers to download songs and movies.

The brochure also carries a clear threat: Stop workers from stealing copyrighted materials or be sued.

The brochure lists a variety of risks companies face from illegal downloads -- infected computer systems from online viruses, exposed private files on peer-to-peer file-sharing networks such as KaZaA, and breached corporate firewalls designed to protect computer networks.

It also lists legal risks, including injunctions, damages, costs and possible criminal sanctions "against your organization or its directors."

The groups remind corporations that the music industry has begun to identify organizations whose computers are used to download, upload or store music files without authorization.

The lure of a fast connection

The brochure tells companies that in April 2002 the recording industry entered into a $1 million settlement with an Arizona company whose employees accessed and distributed thousands of songs using company equipment.

Taking the message directly to corporations is a new tactic for copyright owners, who are also pursuing Internet service providers through the courts.

Last month, a federal judge in Washington, D.C., ruled that Verizon Communications Inc. must identify an Internet subscriber suspected of illegally offering more than 600 songs from top artists. The RIAA, the trade group for the largest music labels, had sought the user's identity with a subpoena approved under the 1998 Digital Millennium Copyright Act.

Thursday, the judge agreed not to force Verizon to comply with the subpoena while he considers Verizon's request for a stay pending an appeal of his ruling.

The brochure follows an October letter sent to companies by the RIAA and MPAA informing them of the extent of the problem. Experts say most illegal downloading occurs at work or at universities, which offer access to high-speed computer connections.

The October letter included a list of companies that provide software to monitor the use of corporate networks.

The brochure recommends performing regular audits of employees' computers to search for audio and video files as well as the presence of peer-to-peer software.

The "sample memo to employees" includes language informing workers that using computers to share illegal files can result in disciplinary action, including termination.



Copyright 2003 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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