Illegal file sharing has cost the recording industry thousands of jobs. Musicians are denied millions in royalties. This does not even consider illegal file sharing of movies, television shows and software. As with any crime, the only winner is the criminal. Thieves take the property of others without permission, and use it for their own gain. Nobody else wins with illegal file sharing. The negative consequences of illegal file sharing demand that action to be taken to curtail it.
In order to stop such criminal behavior, an effective deterrent is required. The actions of the recording industry have reduced illegal file sharing, but it has not stopped it. People are still sharing files illegally. They do so through file-sharing services like Soul Seek or LimeWire or through BitTorrent sites. Clearly, the current approach of dealing with the issue through civil lawsuits is not acting as a deterrent to a degree that protects intellectual property rights and staunches the negative financial impacts on the recording industry. The more effective deterrent would be criminal prosecution. Chronic file sharers would be subject to felony theft charges, given the dollar value attached to their crimes. This would bring to them the threat of hard jail time. When the specter of jail time is compared with the slap on the wrist these criminals will receive when they are sued, the deterrent value of criminal prosecution is obvious.
In addition to the legal and ethical considerations, there is also a strong economic case to be made in support of governmental prosecution of illegal file sharers. Record companies have seen a decline in profits and been forced to lay off workers. The decline in profits hurts shareholders, which includes mutual funds and pension plans that are owned by a wide cross-section of Americans. The five thousand lost jobs represent five thousand people who can no longer pay taxes. Without jobs they are unable to make a significant contribution to the economy with their purchases. When they find new jobs, the new jobs are likely to pay less, putting these workers into the ranks of the underemployed. Another financial consequence of not prosecuting file sharers is that the rule of law is lessened. Other companies...
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