MP3s becomes infringement when files are distributed after conversion to MP3 from CDs (Indian Music Industry, “What is Piracy?The issue of music piracy can be related to the pre-digital age of 1970s when there were legal altercations between the owners of copyrights of films and music and suppliers of technology. In one such case between Ames Records and CBS, legal action was taken by CBS for infringement on its copyrights by Ames permitting subscribers to hire records on rent. Again in 1980s CBS took legal proceedings against Amstrad for supplying cassette tape-to-tape recording material. In both cases, the CBS lost the fight as the court ruled out that prevention of the use of material was not in the hands, as these companies did not “sanction” any copyright infringement. In another battle between Sony and Universal City Studios, the court freed Sony for copyright infringements under the US law, as there were found ‘substantial non-infringing uses for the video-recorders supplied by Sony (Walton, Par.The digital age has made copying fast and easy through new media like CDs, DVDs, MP3 players, hard drives, and digital cameras. Consumers are the winners exploiting the opportunity while rights holders are loosing billions of dollars particularly through P2P sharing of files. Unable to safeguard their interests through court, rights holders are suing consumers, ISPs, operators and even funders of file sharing systems (Walton, Par.According to (MIPI), the internet piracy occurs by compressing, posting, and sending music files via the internet sources like websites, emails or P2P transferring of files. Music files on the internet use a compression process, called MP3. It permits downloading and unsanctioned copying. There is a flood of such sites on the internet that offer P2P file sharing, resulting in loss of income to artists and copyrights holders throughout the world. Not only composers, artists, authors, and record companies are fighting a lost war against online piracy but governments are also getting deprived of income from sales and excise taxes from the authorized sales of CDs and tapes replaced by illegal downloading from the internet (MIPI).The law is very clear on copying of music. It is illegal, making one liable to pay for the losses incurred to the owner of copyrights. There
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