How litigation only spurred on P2P file sharing: “[...] the US Supreme Court in Grokster created a brand new legal doctrine, called inducement, that did not rely on either knowledge or control. That rule was aimed at capturing “bad actors” – those P2P providers who aimed to profit from their users’ infringement and whose nefarious intent was demonstrated by “smoking guns” in their marketing and other communications. But the inducement law failed to appreciate some of the other differences that make the software world special and thus led directly to the explosion in the number of P2P technologies. In understanding why, three other physical world assumptions come into play.
One is that it is expensive to create distribution technologies that are capable of vast amounts of infringement. Of course in the physical world, the creation of such technologies, like printing presses, photocopiers, and VCRs required large investment. Research and development, mass-manufacturing, marketing and delivery all require massive amounts of cash. Thus, the law came to assume that the creation of such technologies was expensive.
That led directly to the next assumption – that distribution technologies are developed for profit. After all, nobody would be investing those massive sums without some prospect of a return.
Finally comes the fourth assumption: that rational developers of distribution technologies won’t share their secrets with consumers or competitors. Since they needed to recoup those massive investments, they had no interest at all in giving them away.
All of these assumptions certainly can hold up in the software development context. For example, those behind Kazaa spent a lot on its development, squeezed out the maximum possible profit and kept its source code a closely guarded secret. By creating a law that focused on profits, business models and marketing, the Supreme Court succeeded in shaking out Kazaa and its ilk from the market.
But the Court failed to appreciate that none of these things are actually necessary to the creation of P2P file sharing software. [...]” http://www.itnews.com.au/News/279763,how-litigation-only-spurred-on-p2p-file-sharing.aspx
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