Kazaa distributor Sharman Networks and partner Altnet hope the formation on Wednesday of their new group, called the Distributed Computing Industry Association (DCIA), will help legitimise the much-maligned peer-to-peer industry, which has come under fire from Hollywood, politicians and the recording industry for being a haven for pirates.
ARIA CEO Stephen Peach told ZDNet Australia it was too early for them to make an assessment of DCIA and its objectives, and said the global record industry has been concerned by the impact of file sharing networks and the promotion of those services to facilitate copyright theft.
"The forming of this association does not legitimise such services or address these very real concerns," said Peach. "What we would want to see from such a group is a recognition of the significant losses being suffered by those artists, songwriters and companies whose recordings are copied without permission and a genuine committment to addressing that issue."
Martin Lafferty, the DCIA's chief executive, said the group is hoping to provide a neutral forum where companies that are affected by or involved in peer-to-peer or distributed computing technology can meet to establish business practices, to encourage the adoption of standards and to help shape public policy.
The association hopes to attract peer-to-peer network providers, software makers and Internet service providers as members. It also aims to draft content providers such as the movie studios and record labels. Ideally, members will be optimistic about the business opportunities presented by peer-to-peer technologies, but will also believe that copyright owners should be compensated for their work, according a DCIA white paper.
"Then this becomes a real and rational business and not just something for hobbyists," Lafferty said.
Sharman, which is based in Australia, is the parent company of Kazaa, one of the most popular online file-swapping services. Altnet is a subsidiary of Brilliant Digital Entertainment. Earlier this month, in an attempt to diminish piracy, the two companies jointly released a new bundle of file-swapping software that includes components of a high-security peer-to-peer network, and a program that pays users to be a part of it.
Just last week, the Recording Industry Association of America (RIAA) warned that it would start gathering information about people using peer-to-peer networks to share music, so it could file thousands of copyright infringement lawsuits against them.
Lafferty said that the DCIA hopes to extend an olive branch to the entertainment companies and work with them to come up with an alternative to litigation.
"It's never a good idea to criminalise your target customers; it's something you kind of do out of desperation," Lafferty said. "It will take the industry somewhat burying the hatchet and sitting down at the table, and the DCIA wants to provide the table."
Lafferty, who once launched a satellite TV industry trade group, said the peer-to-peer market is facing many of the same issues the satellite TV market once did. He said that at first, the satellite TV industry was a hotbed of piracy, with people buying dishes to gain unauthorised access to paid TV programming. But programmers, technology companies, and other players eventually got together to hammer out business plans amenable to all sides, he said.
A representative from the RIAA is hopeful that the new group will help foster a positive dialog with copyright holders.
"Anytime anyone wants to talk to us about becoming legitimate--compensating artists, songwriters and others for their creative works--we are happy to listen," the representative said.
James Pearce contributed to this article
