This Label Loves Peer-To-Peer
 

By JON HEALEY, Los Angeles Times

Like millions of other music lovers, Martin Hall misses the pioneering service from Napster Inc. that let consumers download songs from one another's computers for free.

But Hall isn't your typical music fan. He works for a record label, Merge Records, whose songs were being copied without a dime in compensation.

Merge is among a group of independent labels and artists that view "peer-to-peer" networks as an effective tool for boosting CD sales. The major record companies and many well-known artists, on the other hand, are fighting on multiple fronts to drive consumers away from those systems.

Whereas Merge and others have used peer-to-peer systems to promote little-known artists and new releases, the major labels have sued Napster, Audiogalaxy, Kazaa and three other file-sharing networks, alleging copyright infringement on a grand scale. They also are injecting bogus files onto the most popular networks to stop users from downloading new songs, and they are contemplating lawsuits against consumers who offer huge collections of songs to copy.

The divergent views about file sharing reflect the wide gap in sales and resources between the five major record companies and the many small independents, which say they can't spend the sums needed to get their songs played on commercial radio stations or their music videos aired on cable. That's why it's tough for the music industry to present a unified front - not just on file sharing but also on such technology-driven issues as Internet radio royalties, digital music formats and copy-protected CDs.

The split could pose a problem for the major record companies in their legal battles against the leading peer-to-peer networks. In particular, the efforts by the independents could undermine the major labels' argument that these networks have no significant legitimate use.
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- js.