BPI.co.uk News Content

> 23 settlements from all over the UK > Filesharers pay up to £4,500 in settlement > BPI announces another 31 cases across 8 different P2P networks

UK record companies’ trade association the BPI today announced that 23 UK internet users have agreed to pay thousands of pounds in compensation for distributing music illegally via peer-to-peer networks on the internet.

The BPI said it will also bring 31 new cases against filesharers from across the UK as it steps up its campaign against illegal filesharing. And in a broadening of the campaign the new actions will span eight different filesharing networks. Further cases will follow.

BPI Chairman Peter Jamieson said, “Unauthorised filesharing is against the law. It effectively steals the livelihood of musicians and the record companies who invest in them. We will not hesitate to protect the rights of our members and the artists they represent.”

BPI General Counsel Geoff Taylor said, “We are determined to find people who illegally distribute music, whichever peer-to-peer network they use, and to make them compensate the artists and labels they are stealing from.

“These settlements show we can and we will enforce the law. No one should be in any doubt that we will continue to do so.”

The 23 settlements announced today arise out of the 26 cases announced by the BPI in October 2004. Three cases are still in negotiation and legal action may follow.

The settlements include internet users from all over the UK – 17 men and six women. The average settlement is more than £2,000 – more than a month’s salary for the average UK worker. Two illegal filesharers are paying more than £4,000 each to settle their cases.

BPI General Counsel Geoff Taylor explained, “We have no desire to drag people through the courts. So we have attempted to reach fair settlements where we can.

“We hope people will now begin to get the message that the best way to avoid the risk of legal action and paying substantial compensation is to stop illegal filesharing and to buy music online, safely and legally, instead.”

The BPI announced that it will be going to the High Court today seeking orders for the disclosure of the identities of a further 31 illegal filesharers on a range of peer-to-peer networks, including KaZaA, eDonkey, Grokster, Soulseek, DirectConnect, Limewire, Bearshare and Imesh.

Although impressive developments in legal download services saw an estimated 9 million download sales in the UK in 2004, there are still millions of individuals in the UK who persist in trading files illegally.

Said Taylor, “If illegal filesharers think that they can avoid getting caught by staying away from the most popular networks like KaZaA, they’re wrong. We are going to continue bringing cases against people who distribute music illegally, whichever filesharing network they use, for as long as it’s necessary. Legitimate music services can only prosper if we continue to fight the theft of music on the internet.”

The BPI’s action against illegal filesharing in the UK is part of a global campaign by the record companies who invest in new music, seeking to turn the tide on internet piracy.

Research shows that illegal activity on the once most-popular filesharing network Fast Track – on which KaZaA runs – has plummeted, with the number of users in January 2005 down 45% from its peak in April 2003.

While some more determined illegal filesharers are migrating to other networks, the combination of superior legal services and the threat of legal action means that despite increasing broadband penetration, authorised services are growing at a faster rate than illegal services.

With thousands of cases launched against the users of other illegal networks, illegal uploaders are learning that there is no place to hide; the number of eDonkey servers is down by 61%, BitTorrent servers and users are down 66% while the Direct Connect network has also seen a decline in the number of servers.

23 illegal filesharers pay compensation and give High Court undertakings not to fileshare illegally

Mr R - Swanley, Kent - Kazaa user

Mr S - Chatham, Kent - Grokster user

Ms C - Romford, Essex - Kazaa user

Ms C - Glasgow, Scotland - Kazaa user

Mr G - Hamilton, South Lanarkshire, Scotland - Kazaa user

Mr C - St Leonards, Sussex - Grokster user

Mr D - Chatham, Kent - Kazaa user

Mr R - Andover, Hampshire - Imesh user

Mr J - Bristol, Avon - WinMx user

Mr R - Highbury, London - Kazaa user

Mr J - Cwmbran, South Wales - Kazaa user

Mrs L - Hastings, Sussex - Kazaa user

Mr C - Fife, Scotland - Kazaa user

Mr A - Brighton, Sussex - Imesh user

Ms F - Welwyn Garden City, Herts - Kazaa user

Mr M - Loughborough, Leics - Imesh user

Mrs P - Lytham St Annes, Lancashire - BearShare user

Mr T - Liverpool, Merseyside - Kazaa user

Mr S - Barnstaple, Devon - Kazaa user

Mrs M - Linlithgow, West Lothian, Scotland - Kazaa user

Mr M - Marlow, Bucks - Kazaa user

Mr I - Canvey Island - Imesh user

Mr N - Stoke on Trent - Kazaa user

> The number of files they were distributing over the internet ranged from hundreds to many thousands.

> They include people from every walk of life – from a student to the director of an IT company to a local councillor.

If these uploaders were trading thousands of files £2,000 doesn’t seem very much.

For anyone on average earnings £2,000 is a lot of money – around a month’s salary. The amounts we settled for varied according to the number of files that were illegally uploaded and the specific circumstances of the case, but this action is about deterrence rather than compensation; the aim was to settle these cases where possible rather than sue people.

The legal process takes a little while. We are updating you now because we have taken the decision to launch further lawsuits.

It is difficult to say when particular cases will be resolved, but we hope to announce further settlements in the near future.

Given that people have settled with us and undertaken to the High Court not to do it again, we don’t see any advantage in dragging them through the press. However some of the account holders were parents and – looking at the files they were distributing - it’s highly likely that they settled on behalf of their children. The alternative would have been to put their children through the ordeal of a possible court case. Most parents would not want to put their children in that position.

It’s true to say that some parents have been genuinely shocked to discover what their children have been up to.

Just because we have made progress it doesn’t mean the problem has gone away. The battle against piracy is an ongoing battle.

We won’t know who the people are until we receive their identities from their ISP. As with the action we began in October 2004, we are simply logging on to the filesharing networks and looking for those who are distributing music. We tend to pick up the biggest offenders because they make themselves more obvious. There’s no lower limit, it’s just more likely that you’ll be caught if you’re distributing a large number of songs.

"Piracy is theft - pure and simple. Whether it's Jamelia or a jobbing musician, the artist suffers. We owe it to them to make sure they get a fair return for their creativity, flair and inspiration. The Government supports the principle of proportionate legal action against the worst offending uploaders."

"I find it extraordinary, given the fact that 60% of musicians in the UK earn less than £10,000 per year and 94% of songwriters, composers receive less than £10,000 per year in royalty payments that we are prepared to ask musicians and songwriters, to turn up to work everyday and not get paid for it. Especially since all that many of those musicians and songwriters are trying to do, is to make the world the rest of us live in, a much more valuable, much brighter place."

"The serial uploaders who post thousands of music files free of charge onto the Internet are stealing this product in exactly the same way as a shoplifter in a Music store. Theft on this scale cannot be allowed to continue unchecked."

Steve Knott, Managing Director, HMV Europe, and Chairman, British Association of Record Dealers (October 2004)

"Alongside other record companies we have put a huge investment into making music available for legal downloading in a way which is convenient, easy and above all safe. Not only is there no excuse for unauthorised file-sharing, it simply doesn't make any sense any more."

"The internet has changed all our lives. It is revolutionising the way music is consumed. What it doesn't change are the fundamentals of the concept of intellectual property. Unauthorised filesharing is against the law. After several years of seeing it eat into our livelihoods, we reluctantly and finally have to resort to the law to protect our business."

“We know that there are millions of illegal files circulating on the Internet at any given time. In the European Parliament we have dealt with this by passing effective laws to legislate for the Internet age. There is no upside to illegal uploading – it undermines jobs and creativity. The law is there to be respected and enforced.”

“Once upon a time there was a shortage of fully working legal download sites. Now that’s gone. There are enough outlets for people to buy their music online and I mean buy their music online. I am always amazed the people who profess to love music are prepared to pay their council tax to politicians they don’t like, their bank charges to bankers they despise, but choose to rip-off and steal from the musicians who are supposedly the great influences in their lives.”

Tony Wilson, founder of Factory Records and the InTheCity music convention (October 2004)

"Illegal filesharing has been a tremendous threat to our creative community and our industry overall. We feel we now have no choice but to resort to taking legal action to the worst offenders."

“There is a worrying lack of understanding of the value and meaning and intellectual property. We need to move very swiftly from a climate of ignorance to one in which people understand that illegal uploading is fundamentally no different from shoplifting.”

“Illegal uploading and downloading is theft. Independents lead in music. We must also lead the way in fighting copyright theft on the internet”

“GERA-Europe remains supportive of litigation in the case of large scale uploading. It hopes that this second wave of litigation will continue to serve as a tool to educate music users and to render the legitimate sale of music online more viable and contribute to the revival of music sales through traditional channels. The latest move by the recording industry to stamp out what is essentially theft of copyright material is considered positive provided that the move continues to be accompanied by consumer education and other methods to promote the legitimate sale of music.”

“We are pleased that Coca-Cola Great Britain, alongside other legal download sites, are able to support the UK music industry in its efforts to prevent illegal downloading. Mycokemusic.com was the first major legal branded download site which launched in January 2004 and provided consumers with a simple to use site from a brand they trusted.”

Rafael McDonnell, Head of Strategic Marketing Alliances, Coca-Cola (October 2004)

"Record companies are the biggest investors in new music in the UK. In return for their investment copyright law gives them the right to authorise what happens to that music. People who take music without that permission are damaging future investment in music."

"It's crucial people fully understand the dangers of sharing music illegally. MSN fully supports the IFPI's campaign to raise awareness of these dangers, and of the benefits of legal digital music services like our own MSN Music. Legal music sites, with high levels of security and rigorous digital rights management, are the best solution for both parties - artists and the music industry have their intellectual properties fully protected while consumers can enjoy all their favourite music, free from the dangers of illegal downloads, like viruses, and safe in the knowledge that they are not committing a crime."

“I firmly believe that over time, physical formats for delivering music will be replaced by digital delivery of music. There will be a number of new business models to go alongside the current a la carte download, subscription and streaming businesses of today. All of these businesses must generate revenue as well as offer a great value proposition for consumers, in order for the industry to maintain its health and so consumers can continue receiving songs from the wide range of artists creating music around the world. I am against businesses or individuals that monetize file sharing without compensating rights holders, and I fully support any system that helps create the new digital business models.”

Scott Cohen. Founder and Vice President, International, The Orchard (October 2004)

“People forget that the music industry is not just about the stars, it’s about the people we represent, the session players and orchestral players. The stars are nowhere without the backing singers and musicians. It is a business which is very fragile. The whole ecology of the music industry depends on our defeating piracy.”

“File sharing is illegal and if it is allowed to continue it may wipe out investment in recorded music. Absolutely no one wants that.”

Lucian Grainge is Chairman and CEO of Universal Music UK & Ireland (March 2004)

“I hate what's happening with illegal downloading. People who love music shouldn't do this. The music industry provides huge choice. By stealing music you deny other people that choice in the future. Some may say it does not affect new and eclectic music. The fact is that it is precisely this kind of music which gets displaced. For small businesses it's particularly tough. Most of us came into this business not to get rich but because we love music. No one who loves music would steal it.”

“Inexpensive paid downloads have resuscitated the singles market in the US - already over 2 million sales per week are being recorded - and the weekly total is rising all the time.”

“Illegal downloading is sucking revenue out of the record industry and threatening its ability to invest in its future. It is essential that it takes firm action against illegal downloaders.”

Helen Snell is an analyst at UBS monitoring the music industry (March 2004)

“Serial uploaders are guilty of a cynical and deplorable act of stealing from those who create and invest in music. We endorse this campaign to warn them of the action they open themselves up to.”

Alison Wenham is Chief Executive of Aim (Association of Independent Music) (March 2004)

“In the battle to educate consumers about the unethical nature of music downloading, we must, as an industry, make it clear that unauthorized copying of music is illegal, and hurtful to artists and every person who makes a living working in the music business.”

“As a new company selling legal downloads to the consumer on behalf of major and independent labels as well as artists and managers, we have had a lot of success with the likes of Coldplay, Ash, Will Young and Zero 7 downloads. But it certainly doesn't it make it any easier when people are able to download music illegally for free using Grokster, Kazaa and illegal MP3 websites and newsgroups. The difference between us and them is that with us the artists get paid for their work.”

“A new generation of computer-literate music fans have grown up who seem to believe that music on the internet is in the public domain and do not understand why on earth music should be paid for; a business acquaintance has a 16- year old son who has downloaded 10,000 tracks and has never paid for music in his life. This cannot continue. Otherwise small independent labels like Boss Music will simply not be able to survive.”

“Innocent or intentional, illicit downloading represents a kind of global shoplifting spree which no business can sustain. The video industry is learning vital lessons from the music industry's experience; hence the BVA's partnership with the BPI to research and understand better the impact on-line copyright theft is having on the creative industries, with a view to developing a strategy to address the issue.”

Lavinia Carey is Director General of the British Video Association (March 2004)

“Breaking new artists can take years of investment and hard work. Illegal file-sharing takes money from the business and from the artists. If it continues it cannot help but compromise our ability to invest in new British music.”

Rob Stringer is Chairman and CEO of Sony-BMG Music Entertainment UK & Ireland (March 2004)

“Illegal downloading affects independent labels as much as anybody else. It is theft. If someone walks into a record store and takes a CD without paying, they open themselves up to criminal prosecution. It is no different on the internet.”

“Illegal downloading is very bad for us. It’s a constant battle and the scale of it is enormous. We put promos out on vinyl and we have artists coming in and complaining ‘It’s only been out five minutes and it’s up on the internet’. Sure enough someone’s ripped it and uploaded it. If people take the time and effort to make music, they deserve to be paid for it.”

“OD2 has succeeded against competition from illegal sites in building the beginnings of a legal downloading infrastructure for the UK. We have proved that discerning consumers will pay for the better quality guaranteed from the legal sites that we manage.”