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«IFPI’S WORK ON EDUCATION, TRAINING AND AWARENESS BUILDING IN THE AREA OF ENFORCEMENT OF RIGHTS May 2006 IFPI, the International Federation of the ...»

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2005) found that equal proportions of teenagers – previously the core constituent p2p users – now use legal services as those using p2p – about 30 per cent of teenagers in both cases. This suggests major progress for legal services, since the previous teen user ratio measured by Pew was 3:1 in favour of p2p use.

• In the UK, 10 per cent of the population frequently use p2p vs. seven per cent who use legal services (Jupiter, Nov 04) Meanwhile outside the US and UK, P2P use still outweighs legal – but with a steady

catching-up of legal use:

• Europe: 51 per cent digital music users use P2P vs. 29 per cent who use legal services (Indicare, Feb 05)

• Germany: 85 per cent downloaders use P2P vs. 51 per cent who use legal services (GfK, Jan 05)

• Canada: 22 per cent downloaders use P2P vs. 12 per cent who use legal services (Pollara, Jun 05).

However actual download volumes from legal sources are still very low compared with unauthorised sources. For example in Canada, research has revealed that for every one legal download there are some 14 illegal downloads.

Sales

• Single track downloads in the US, the UK, Germany and France rose to 180 million in the first half of 2005 compared to 157 million for the whole of 2004.

This is more than three times the 57 million downloads of the first half of 2004.

• In the US, to end October 2005, year to date digital album sales reached 10.9 million, up 226 per cent on 2004. Single track downloads have sold 251.3 million, up 160.3 per cent. Digital albums represent 2.6 per cent of total album sales (CD, MC, digital and other) compared to 0.7 per cent a year ago.

• In UK single track downloads in the nine months of 2005 were at 16.9 million, up from 2.7 million in the same period of 2004 (BPI)

• Global subscriptions to legal online services reached 2.4 million by September 2005, up from 1.5 million subscriptions estimated in IFPI’s Digital Music Report in January.

THE RISKS OF P2P Consumers have found that possible legal consequences of using p2p networks are not the only risk they face when illegally file-sharing.

• One of the world’s most used p2p applications, Kazaa, was named as a major violator of StopBadware.org’s guidelines. The group, based in Harvard and Oxford Universities, say that more than 59 million people’s computers in the US have software that hampers the machine's performance (March 2006).

• Kazaa was also named as the number one spyware threat by Computer Associates International (November 2004). Spyware (small applications that install themselves on a machine and then transmit information back to somewhere else on the Internet) can be downloaded with files without the users’ knowledge.

• Research from TruSecure showed that 45 per cent of the executable files downloaded through Kazaa contain malicious code like viruses and Trojan horses, after a test of 4,478 files in August 2004.

• Websense, the Internet security firm, said that almost half of executable files downloaded through Kazaa contain malicious code (December 2004).

• Many users find themselves downloading the wrong files as the names and descriptions for them can be misleading and consumers can end up with inappropriate materials.

• Paedophiles have used p2p communities to distribute pornographic materials and make contact with children.

• p2p network worms spread using the networks. The most widespread are Kazaa P2P network worms. They usually locate a Kazaa client shared folder and copy themselves there with an attractive name, of a popular song for example.

Sometimes such worms replace real sound files with their copies and add executable or double extension to such files.

• Such viruses and worms open up the risk of sharing private files, unintentionally, with others over the Internet.

For further information, please contact The IFPI Secretariat, 54 Regent Street, London W1B 5RE, United Kingdom, Tel: +44 (0)20 7878 7900; Fax: +44 (0)20 7878 7950; e-mail:

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