'Legal' Download Service Deemed Illegal

by Glen Shapiro, LawAndTax-News.com, New York

24 October 2005

Ruling last week, a US District Court has called a halt to "deceptive" ads from a Web operation which claimed that membership in MP3DownloadCity.com would allow users of peer-to-peer (P2P) file-sharing programs to transfer copyrighted materials without violating the law.

The Federal Trade Commission announced that it will be seeking a permanent bar on the deceptive claims, redress for consumers, and a requirement that the defendant notify consumers who signed up for membership that the programs he promotes to share copyrighted files may subject them to civil or criminal liability.

According to the FTC, the defendant, Cashier Myricks, markets and sells a tutorial and referral service that promotes the use of P2P file-sharing software programs to download digital music, movies, and computer games.

However, unlike a licensed subscription service, the defendant’s service does not provide its paying customers with a license to download and share copyrighted music, movies, or games. Instead, for $24.95, the defendant instructs consumers on the use of free P2P file-sharing software provided by others, such as Kazaa.

According to the FTC’s complaint, consumers are lured to become members by deceptive claims that subscribing to the defendant’s service makes P2P file sharing legal. However, customers who use P2P file-sharing programs to download copyrighted material, or who make it available to others, without the copyright owner’s permission, are engaged in copyright infringement and could face civil and criminal liability.

The FTC charged that the defendant violated the FTC Act by falsely claiming that membership in its service made P2P file sharing legal.

Recommended