Friday, May 2, 2003

Record Companies Settle Lawsuits Against 4 Students By SCOTT CARLSON A group of record companies on Thursday settled lawsuits they had filed against four college students who ALSO SEE: The record companies' settlement with Jesse Jordan The record companies' settlement with Aaron Sherman These documents can be viewed using Adobe Acrobat Reader, available free. were running file-sharing services within their institutions' networks. The companies had accused the students of contributing to copyright infringement by allowing users of their services to copy songs illegally. Observers said the recording industry may have been eager to settle because a U.S. District Court in Los Angeles said last week that two file-sharing programs, Grokster and Morpheus, are not themselves illegal even though they make it possible for their users to commit illegal acts (The Chronicle, April 28). In its lawsuits, filed April 3, the recording industry had asked for millions in damages from the four students. Under the settlements, the students will pay from $12,000 to $17,500 each, with the payments stretched out over a period of years. Also the students will be forced to take down their file-sharing services. The four students are Joseph Nievelt, of Michigan Technological University; Daniel Peng, of Princeton University; and Jesse Jordan and Aaron Sherman, both students at Rensselaer Polytechnic Institute. In the agreements, the students deny the record companies' allegations. Matthew J. Oppenheim, senior vice president for business and legal affairs at the Recording Industry Association of America, said in a statement that 18 file-sharing networks had been shut down since the industry group filed its suits. "We believe it's in everyone's best interest to come to a quick resolution," the statement said, "and that these four defendants now clearly understand the seriousness with which we view this type of illegal behavior." However, at least some of the students said that they had not done anything illegal by operating the file-sharing services, and that they were forced to settle because of the daunting and expensive prospect of fighting the companies in court. Howard Ende, the lawyer for Mr. Peng, was defiant. "Dan never felt that he was doing anything wrong, and I believe that as well," he said. The record companies "claimed that this was a Napster-like system, when in fact it's a Google-like system. It had many things on it that were academically related." Mr. Ende says the recording industry never intended to go to trial. "The purpose of the suit was clearly meant to intimidate Internet users in general," he said. "They wound up engendering not just fear, but fear and loathing. Rather than scaring, I think they alienated. They should be working with colleges and universities to try and find a sensible way to protect their intellectual property." "It's unfortunate, because there are some serious legal issues here," said Mr. Nievelt's lawyer, Thomas A. Lewry. "I think the recording industry is afraid of taking it any further, especially in light of the Grokster decision." In the Grokster case, U.S. District Judge Stephen V. Wilson said that file-sharing services are legal even if users illegally trade copyrighted files through those services. File-sharing services are like video-cassette recorders, the judge said, in that they can be used for both infringing and non-infringing purposes. Andy Jordan, Jesse Jordan's father, said Thursday that after the recording industry filed its suits, "they began immediate negotiations to try to force the kids to settle as fast as possible." "This whole thing is a publicity stunt, and unfortunately it has ended up as a big story in every country on the planet with names named and reputations trashed with no real evidence at all," he said. The Jordans have not been able to afford a lawyer to defend their son. Andy Jordan, a computer scientist who is a technology consultant, was laid off from a full-time job two years ago. "We barely make ends meet as it is," he said. He added that the record industry would rather sue innovators than change with the times. At Michigan Tech, RPI, and Princeton, "the kids are not learning to violate copyright laws, but how to develop hot technologies" that terrify the RIAA, he said. "If they don't corner the market on the digital distribution, as they have the physical distribution," he said of the record companies, "they are going to lose a lot of money. They don't want competition." Background articles from The Chronicle: New Jersey Institute of Technology Prohibits File Sharing on Its Campus (5/1/2003) Record Industry Will Send Warnings to Millions of Users of 2 File-Sharing Services (4/30/2003) Judge Finds That 2 File-Sharing Programs Don't Violate Copyright Law (4/28/2003) Recording Industry Sues 4 Students for Allegedly Trading Songs Within College Networks (4/18/2003) Film Studio Sends Hundreds of Letters to Colleges, Alleging Illegal Downloading (3/21/2003) Colleges Told to Block Illegal File Sharing (3/14/2003) Higher-Education Organizations Urge a Crackdown on Illegal File-Sharing (10/25/2002) Easy-to-print version E-mail this article

Virginia governor vetoes bill barring in-state tuition for illegal immigrants U. of California says it might opt out of bidding for Los Alamos contract Organizers of TA union at Yale lose unofficial vote for representation President of U. of Arizona apologizes after campus police officers handcuff 2 black professors 2 Catholic institutions in the Detroit area will merge Student's death at Plattsburgh State U. was caused by hazing, police say Spring commencement speakers are announced by 25 colleges Record companies settle lawsuits against 4 students