Filing lawsuits is a controversial strategy for Hollywood, and the demagoging has already begun—for example, as MPAA out [sic] it, “Suing 13 year olds and taking their college money isn’t the best approach.”[“Movie Makers Plan to Sue Internet File Swappers,” Washington Internet Daily, November 5, 2004, p. 1.] Yet few question the legal liability of downloaders under copyright law. And the stakes are high for the industry and consumers: the billions in revenue lost through Internet downloading could mean higher prices for law-abiding movie fans or could discourage production of financially risky pictures.

Moreover, direct legal action against infringers is far preferable to many of the other approaches to the P2P download problem that have been discussed in Washington. Many, for instance, have urged federal regulation of PCs, DVDs, and other devices that could be used to copy movies and music, in order to make infringement more difficult. Other proposals would extend legal liability to manufacturers of these devices. Policymakers, however, should be extremely wary of such a regulatory approach. Any regulation of the fast-changing world of the Internet and consumers electronics would likely hinder valuable innovation, as well as increase costs to consumers.

Of course, lawsuits by themselves are unlikely to solve the P2P download problem. Continued education also needs to be pursued so that potential file-swappers understand why the unauthorized downloading of copyrighted material—like other forms of theft—is wrong. Another part of the solution is likely to be development of new technologies that allow copyright holders to make copying protected works more difficult.

Filing lawsuits is a controversial strategy for Hollywood, and the demagoging has already begun—for example, as MPAA out [sic] it, “Suing 13 year olds and taking their college money isn’t the best approach.”[“Movie Makers Plan to Sue Internet File Swappers,” Washington Internet Daily, November 5, 2004, p. 1.] Yet few question the legal liability of downloaders under copyright law. And the stakes are high for the industry and consumers: the billions in revenue lost through Internet downloading could mean higher prices for law-abiding movie fans or could discourage production of financially risky pictures.

Moreover, direct legal action against infringers is far preferable to many of the other approaches to the P2P download problem that have been discussed in Washington. Many, for instance, have urged federal regulation of PCs, DVDs, and other devices that could be used to copy movies and music, in order to make infringement more difficult. Other proposals would extend legal liability to manufacturers of these devices. Policymakers, however, should be extremely wary of such a regulatory approach. Any regulation of the fast-changing world of the Internet and consumers electronics would likely hinder valuable innovation, as well as increase costs to consumers.

Of course, lawsuits by themselves are unlikely to solve the P2P download problem. Continued education also needs to be pursued so that potential file-swappers understand why the unauthorized downloading of copyrighted material—like other forms of theft—is wrong. Another part of the solution is likely to be development of new technologies that allow copyright holders to make copying protected works more difficult.