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Privacy and Piracy: the Paradox of Illegal File Sharing on Peer-To-Peer Networks and the Impact of Tech- Nology on the Entertainment Industry

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Privacy and Piracy: the Paradox of Illegal File Sharing on Peer-To-Peer Networks and the Impact of Tech- Nology on the Entertainment Industry S. Hrg. 108–275 PRIVACY AND PIRACY: THE PARADOX OF ILLEGAL FILE SHARING ON PEER-TO-PEER NETWORKS AND THE IMPACT OF TECH- NOLOGY ON THE ENTERTAINMENT INDUSTRY HEARING BEFORE THE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS OF THE COMMITTEE ON GOVERNMENTAL AFFAIRS UNITED STATES SENATE ONE HUNDRED EIGHTH CONGRESS FIRST SESSION SEPTEMBER 30, 2003 Printed for the use of the Committee on Governmental Affairs ( U.S. GOVERNMENT PRINTING OFFICE 90–239 PDF WASHINGTON : 2004 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 0ct 09 2002 08:04 Jan 30, 2004 Jkt 090239 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 C:\DOCS\90239.TXT SAFFAIRS PsN: PHOGAN COMMITTEE ON GOVERNMENTAL AFFAIRS SUSAN M. COLLINS, Maine, Chairman TED STEVENS, Alaska JOSEPH I. LIEBERMAN, Connecticut GEORGE V. VOINOVICH, Ohio CARL LEVIN, Michigan NORM COLEMAN, Minnesota DANIEL K. AKAKA, Hawaii ARLEN SPECTER, Pennsylvania RICHARD J. DURBIN, Illinois ROBERT F. BENNETT, Utah THOMAS R. CARPER, Delaware PETER G. FITZGERALD, Illinois MARK DAYTON, Minnesota JOHN E. SUNUNU, New Hampshire FRANK LAUTENBERG, New Jersey RICHARD C. SHELBY, Alabama MARK PRYOR, Arkansas MICHAEL D. BOPP, Staff Director and Chief Counsel JOYCE RECHTSCHAFFEN, Minority Staff Director and Counsel AMY B. NEWHOUSE, Chief Clerk PERMANENT COMMITTEE ON INVESTIGATIONS NORM COLEMAN, Minnesota, Chairman TED STEVENS, Alaska CARL LEVIN, Michigan GEORGE V. VOINOVICH, Ohio DANIEL K. AKAKA, Hawaii ARLEN SPECTER, Pennsylvania RICHARD J. DURBIN, Illinois ROBERT F. BENNETT, Utah THOMAS R. CARPER, Delaware PETER G. FITZGERALD, Illinois MARK DAYTON, Minnesota JOHN E. SUNUNU, New Hampshire FRANK LAUTENBERG, New Jersey RICHARD C. SHELBY, Alabama MARK PRYOR, Arkansas RAYMOND V. SHEPHERD, III, Staff Director and Chief Counsel JOSEPH V. KENNEDY, General Counsel ELISE J. BEAN, Minority Staff Director and Chief Counsel MARY D. ROBERTSON, Chief Clerk (II) VerDate 0ct 09 2002 08:04 Jan 30, 2004 Jkt 090239 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 C:\DOCS\90239.TXT SAFFAIRS PsN: PHOGAN C O N T E N T S Opening statements: Page Senator Coleman .............................................................................................. 4 Senator Levin .................................................................................................... 10 Senator Sununu ................................................................................................ 27 Senator Pryor .................................................................................................... 30 Senator Collins ................................................................................................. 35 Prepared statements: Senator Coleman .............................................................................................. 7 Senator Levin .................................................................................................... 12 Senator Pryor .................................................................................................... 31 Senator Collins ................................................................................................. 36 Senator Carper ................................................................................................. 71 Senator Lautenberg .......................................................................................... 72 Senator Durbin ................................................................................................. 75 WITNESSES TUESDAY, SEPTEMBER 30, 2003 Hon. Barbara Boxer, a U.S. Senator from the State of California ...................... 1 Mitch Bainwol, Chairman and Chief Executive Officer, Recording Industry Association of America, Washington, DC ........................................................... 15 Jack Valenti, President and Chief Executive Officer, Motion Picture Associa- tion of America, Washington, DC ....................................................................... 17 L.L. Cool J, Recording Artist, New York, New York ............................................ 19 Mike Negra, President, Mike’s Video, Inc., State College, Pennsylvania ........... 20 Alan Morris, Executive Vice President, Sharman Networks Limited, Aus- tralia/England/Vanuatu ....................................................................................... 43 Derek S. Broes, Executive Vice President of Worldwide Operations, Altnet, Woodland Hills, California .................................................................................. 45 Chris Gladwin, Founder and Chief Operating Officer, FullAudio, Inc., Chi- cago, Illinois .......................................................................................................... 47 Lorraine Sullivan, New York, New York ............................................................... 49 Chuck D, Record Artist, Author, Activist, Los Angeles, California ..................... 51 Jonathan D. Moreno, Director, Center for Biomedical Ethics, University of Virginia, Charlottesville, Virginia ...................................................................... 63 James V. DeLong, Senior Fellow and Director, Center for the Study of Digital Property, The Progress and Freedom Foundation, Washington, DC ............... 65 ALPHABETICAL LIST OF WITNESSES Bainwol, Mitch: Testimony .......................................................................................................... 15 Prepared statement .......................................................................................... 78 Boxer, Hon. Barbara: Testimony .......................................................................................................... 1 Broes, Derek S.: Testimony .......................................................................................................... 45 Prepared statement .......................................................................................... 115 Chuck D: Testimony .......................................................................................................... 51 Cool J, L.L.: Testimony .......................................................................................................... 19 DeLong, James V.: Testimony .......................................................................................................... 65 Prepared statement with an attachment ....................................................... 136 (III) VerDate 0ct 09 2002 08:04 Jan 30, 2004 Jkt 090239 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 C:\DOCS\90239.TXT SAFFAIRS PsN: PHOGAN IV Page Gladwin, Chris: Testimony .......................................................................................................... 47 Prepared statement .......................................................................................... 123 Moreno, Jonathan D.: Testimony .......................................................................................................... 63 Prepared statement .......................................................................................... 134 Morris, Alan: Testimony .......................................................................................................... 43 Prepared statement .......................................................................................... 103 Negra, Mike: Testimony .......................................................................................................... 20 Prepared statement .......................................................................................... 99 Sullivan, Lorraine: Testimony .......................................................................................................... 49 Prepared statement .......................................................................................... 130 Valenti, Jack: Testimony .......................................................................................................... 17 Prepared statement .......................................................................................... 88 APPENDIX EXHIBITS 1. Statement for the Record from Steve Wiley, President, Hoodlums New and Used Music & DVDs ................................................................................... 145 2. Responses to supplemental questions and for the record submitted to Mitch Bainwol, Chairman and CEO of the Recording Industry Association of America (RIAA) ............................................................................................... 148 3. Responses to supplemental questions and for the record submitted to Jack Valenti, President and CEO of the Motion Picture Association (MPA) ......... 157 4. Responses to supplemental questions and for the record submitted to Alan Morris, Executive Vice President, Sharman Networks Limited (Parent Company of KaZaA) ............................................................................................ 158 5. Responses to supplemental questions and for the record submitted to Chris Gladwin, Founder and Chief Operating Officer of FullAudio Corporation .... 162 6. Charts submitted by Senator Barbara Boxer: a. ‘‘Shared Folder’’ chart .............................................................................. 164 b. ‘‘Beatles’’ search generates ‘‘teen porn file’’ chart ................................. 165 VerDate 0ct 09 2002 08:04 Jan 30, 2004 Jkt 090239 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 C:\DOCS\90239.TXT
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