Court Rules Verizon Must Release Individual Subscriber's Identity in File Sharing

Dealing a serious blow to online privacy protection and an increase in the liability of Internet Service Providers, U.S. District Federal Court John D. Bates has ordered the online division of Verizon Communications to reveal the identity of one of its online subscribers who is suspected of downloading hundreds of music files per day using the Kazaa music file sharing service. The Recording Industry Association of America (RIAA) argued to the Court that it was justified in "fast tracking" the legal process and could compel an Internet Service Provider to turn over subscriber information without the legal prerequisite of requiring the copyright holder to first file a legal action. In this case, however, the recording industry group asked for information on someone who was distributing material from a personal computer using the popular file-trading program KaZaa, rather than a central server. Verizon initially refused to turn over any subscriber information, arguing that this would violate its customers' expectation of privacy and due process rights under U.S. law. Verizon also argued that the subpoena process was unfair because it is not subject to approval by a Judge; subpoenas can be issued by the Clerk of any Federal Court. Judge Bates did not agree with Verizon's position, and issued a ruling that upholding Verizon's position "would create a huge loophole in Congress's effort to prevent copyright infringement on the Internet."

Verizon has announced that it will appeal the Judge's ruling, but if the appeal is not successful, it means that individuals who engage in file-swapping could be individually targeted for legal action by the lawyers of the media and entertainment companies. These individuals will likely lack the resources to fight the entertainment industry lawyers. Anyone who can connect to the Internet can copy files to a "shared folder," and by running one of the software sharing programs can make material available to millions of users who search for it online. Generally, file sharing is most popular with the teenage crowd, who may or may not comprehend that using file sharing software programs could subject them to liability. As music-swapping teenagers are often minors and live with their parents, their parents also could be subject to prosecution if the parents are the named subscribers of the online service that connects their homes to the Internet.

This case has been closely followed by both privacy advocates and the entertainment industry. The RIAA links its dramatically declining CD sales revenue directly to online piracy, which may or may not be the only factor in declining sales. Prior to this decision, the RIAA had pursued distributors of intellectual property and copyrighted material, such as KaZaa and Napster. Judge Bates's decision may cause the RIAA and film industry to go after individual users who post and share media files on the Internet. According to Sara Deutsch, Vice President and General Counsel for Verizon, "The Court's decision has troubling ramifications for consumers, service providers and the growth of the Internet. It opens the door for anyone who makes a mere allegation of copyright infringement to gain complete access to private subscriber information without the due process protections afforded by the Courts."

Kazaa's file sharing software is estimated to have been downloaded more than 100 million times. Legal experts say that Judge Bates's decision means that the entertainment industry lawyers can now zero in on individuals and not just businesses. "This will be a big club in the hands of the entertainment industry," said Jonathan Band, a Washington lawyer who specializes in Internet law. "They will definitely be able to reach a class of users that they have not been able to reach until now." Internet service providers are concerned that if Judge Bates's decision stands, they will be deluged with subpoenas from the entertainment industry demanding the identities of many thousands of their customers.

Stay tuned for the next chapter of "As the Consumer Squirms."