Tue, Sep 16, 2003 - Page 16 News List

Music industry lawsuits spark technology race

With media companies suing individuals who download material from the Internet, software developers are designing file-sharing systems that ensure on-line privacy

By Saul Hansell  /  NY TIMES NEWS SERVICE , NEW YORK

Another file-sharing model is for business users who want to collaborate while protecting secrets from competitors. "The needs of businesses and the needs of file traders are the same," Shirky said. "I want a secure way to send you a three megabyte PowerPoint file with no way for anyone else to see it. That is not different from an MP3 file."

Software by companies like Groove Networks creates private file networks for specified users. Groove, which can cost $69 or more per user, is not widely employed by music sharers. But a program called Waste is attracting the interest of music traders who want to create "darknets," as private file-sharing communities are known.

Waste was written by Justin Frankel, who works for the Nullsoft unit of America Online. It was posted on Nullsoft's site one day last May and removed the next , although not fast enough to keep copies from circulating on the Web. (AOL's corporate cousin, Warner Music, is a backer of the RIAA's campaign against file sharing.) Frankel and AOL did not return calls seeking comment.

Investigators for the music industry acknowledge that some of these technologies may make their jobs more difficult, but they suggest that users may not want to take advantage of them.

"The thing about darknets is that the users show more culpability than people who simply use peer-to-peer," said Randy Saaf, referring to peer-to-peer sharing systems like KaZaA. Saaf is chief executive of MediaDefender Inc, a music technology company that does work for the record industry. "When people are found to be using them, they will face stiffer penalties."

Meanwhile, older file-sharing services do not want to lose users to darknets or other newcomers. Many of them are trying to add features they say will protect privacy. Streamcast networks, the creator of Morpheus, introduced a feature this summer that lets users relay files by way of intermediary computers known as proxy servers -- a technique that can help obscure the path between the source of the file and the person who downloads it.

Proxy servers and similar methods can be an effective way to hide, said Stuart Schechter, a Harvard security researcher. But, he said, there is nothing to stop the recording industry from creating proxy servers as so-called honey pots to serve as decoys and gather information on users. "The problem with any of these systems is how do you decide who to trust," he said.

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