Online Digital Music Swapping; Recording Industry and P2P Websites’ Opposition.

    The large-scale website of MP3 download platform, KURO, was accused of allowing its members to unlimitedly download popular songs and all kinds of audio-visual and information files for free without legal authorization by establishing the files swapping websites supporting MP3 download. 11 large-scale record companies, such as Rolling Stone and Sony Music, jointly filed a complaint against KURO for violation of the Copyright Law.

    The prosecutor and the police indicated that according to the Intellectual Property Office’s latest explanation at the end of July of this year, the use of KURO’s platform of MP3 swapping, in addition to the “reasonable use” as stipulated in the Copyright Law, must be based on the copyright owner’s agreement or authorization. Otherwise, infringement on the rights of “reproduction” and “public transmission” probably would be constituted. “Download” is deemed as an act of “reproduction,” while the offer of MP3 files stored in the computer to other users to download through KURO’s websites is an act of “public transmission” as regulated in the current Copyright Law.

　Regarding the issue whether KURO websites and its members’ acts comply with the “reasonable use” as stipulated in the Copyright Law, the prosecutor emphasized that: KURO had propagated in the advertisement that users can unlimitedly download 500,000 new songs at the low monthly cost of NT$ 99, and even provided burning software; the public can determine whether KURO’s act had infringed on copyright at their discretion. The prosecutor also indicated that there had always been controversy over the legality of the MP3 download software and files. Moreover, since the number of KURO’s members reaches 500,000 to 600,000 persons, KURO’s actual income in cash per year at least reaches $600,000,000 if the actual income is calculated at the monthly charge of NT$ 99 for every member. Should the judiciary determines that KURO’s act is illegal at the end, KURO will not only encounter civil action which claims for huge amount of compensation, but also probably make its members “accomplices.” Therefore, this matter indeed deserves users’ highest attention.