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Ever since Napster, the music industry has been trying to kill filesharing.

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Napster was this huge global party of you know... 

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Everybody suddenly had access the largest music library in the world

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and what'd they do, well they went after Napster and shut it down.

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Well it completely backfired, you know, they shattered Napster into millions of little pieces

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spread across computers all around the globe.

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And now if you want to shut it down you have to track down every single one of them

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 and turn it off, and they just can't do that. 

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They send out letters every month trying to shut down a couple here and there,

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but it just doesn't work, you know, there are just too many, it's out of the bag now.

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Once it's that far distributed it's really going to be be hopeless, 

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They have various technical attacks of spoofing, legal attacks 

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threatening to sue people, but it's just too late, filesharing isn't going to go away. 

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The music industry, if they want to stop file-sharing,

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 there's no central computer for them to go to and shut it down.

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They have to go all the way to the ends of every wire,

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and they have to snip all the cords across the globe if they want to try and stop it.

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The network is built so that there's nobody in charge,

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that everybody has control over their own communications.

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So the fascinating thing about the internet is it's built around this thing called

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the end-to-end-principle, which says that all the intelligence is at the ends of the network.

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If I want to talk to Fred it's my computer and Fred's computer that's in charge,

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in between there's just a bunch of wires. At a very concrete level

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I have a wire to my ISP who has a wire to a data center somewhere,

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who has a wire to Fred's ISP who has a wire to Fred.

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There's no central computer in charge that you can go to and shut down and say "no filesharing"

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They have to go and find my computer and Fred's and take us out,

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or they have to snip all the wires across the globe.

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There's nobody you can go to and say "shut down file-sharing!"

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it's just not built that way.

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The entertainment industry thinks they can solve this problem by using something called DRM, 

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which basically means locking up all their songs using encryption.

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But there's this fundamental mistake they've made

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which is that like if you lock up a song before you play it you have to unlock it

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and if i'm playing it on my computer my computer has to unlock it 

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and since I own my computer I've unlocked the song.

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It's this very obvious mistake they just can't seem to get through their heads,

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if my computer is unlocking the song, I can tell it to make a copy when it's done unlocking it.

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There's no way around that, and so if you see every DRM system gets broken,

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the Apple system has gotten broken, the DRM on DVDs has gotten broken -

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no matter what you do it's going to get broken.

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And it's also kind of idiotic because even if the DRM systems weren't broken

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 there are lots of other ways to get movies, not just downloading it from the iTunes music store.

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You can go out to a theatre and take a copy of a print, you can have a video camera, 

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you can have a screener that they send out to people, there's tons of ways to get this stuff.

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Putting DRM on the handful that happen to go to consumers isn't going to change anything. 

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Instead what a lot of people have suggested is that DRM is a way of handcuffing users

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or saying OK we'll give you our stuff, but you can only watch it five times on four machines,

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and only watch it when we say so and we can de-activate it when we're done with it,

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we have control over how you experience our film. 

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That makes a lot more sense, it's harder to prove obviously but   

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it's certainly much more compatible with the way that they've been behaving.

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Network is a copy machine. 

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Every single time you do something on your computer, it makes a copy.

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First it copies it into your computer's memory, then it copies it to your computer's CPU, 

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then it copies it out to the network, in every step along the way from

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 you to the person you're talking to it makes another copy. 

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The entire system works because it's digital and because copies are free.

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Everything works by making copies on a computer, you're not going to stop that.

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It's the simple economics of supply and demand. 

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If you have one of something, you can sell it to the highest bidder

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for the highest price, whatever anybody in the world is willing to pay

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you can sell it to them for that.

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If you have two then you can only sell it for what the second highest bidder is willing to pay.

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 If you have millions of them the only thing you're going to be able to

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charge for is the cost of making another copy.

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'Cause otherwise someone's always going to be willing to sell it for cheaper. 

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On the internet the cost of making one additional copy is free

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the so called marginal cost is zero so everything gets driven down to free.

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You're not going to be able to make money through the old model of selling

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 individual copies any more because there are just to many of them.

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You're going to have to go to other schemes. 

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The entertainment industry is desperately trying to save their old business model,

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 they're going round saying how can we to patch up and continue doing

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things the way we've done before. That's just not going to work. 

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They can try and continue this rearguard actions like DRM and lawsuits, 

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but eventually they're going to have to change their tune.

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So there are alternatives, there are sites like Rever.com which are like Youtube,

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except everytime an add gets shown with your movie, you get some of the money from the add.

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The problem is that the users don't seem to care about it enough.

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Each individual movie only makes 30 or 40 cents and it's just not worth it to you

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to go and put it up on a smaller site like Rever when you can get the huge audience of Youtube,

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and, you know, forget the 40 cents. 

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But these little 40 cents add up, with the millions and millions of movies on Youtube

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suddenly we are talking about millions of dollars of revenue. 

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So you have this weird trade-off, where each little bit's not worth it enough to users

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but on the whole companies are prepared to pay a lot of money for it. 

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There's no technical reason users can't do this for themselves, 

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but there's an economic reason which is that  

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building the software takes money and programers,

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and the venture capitalist are only going to pour money 

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in to the things that have a high chance of return. 

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which means the centralized sites that run adds and take the money for themselves.

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So yeah sure, it's technically possible that we could develop this distributed system

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and in fact that was the way that the way that the internet was originally set up

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People put their stuff on their own computers and when they hooked them up to the internet 

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people visited their own machine and they controlled their own data.

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The fact is that could've worked, that's just as reasonable of way of doing it than ?any way else?.

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The problem is that's just not the where the money is, and when software gets funded

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it gets funded where the money is. 

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There are two big problems, one is technical and one is political. 

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The technical problem is that basicly computers, people's machines at home,

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don't have the power of servers.

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They're not on all the time, people buy this cable modems that don't have the

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high enough upload bandwidth to be popular.

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Cable companies have people signing user-
agreements 

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saying they can't run servers from home. 

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So if you want to do something like host a youtube video

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it's just kind of impractical to host it off of your computer, let alone your laptop

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that you pick up and take home with you. So it's really hard for normal people to run servers. 

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So that's a technical problem, it means

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at some point you're going to have to upload your video to somebody's server

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somewhere else where it is run reliably, and that means inevitably giving up a measure of control.

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So the question that comes is who do you give the control to, and users just don't care enough.

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Wether it's Youtube or it's Amazon or somebody who's signed an agreement with them.

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They just don't care who they give it too, the simplest thing is the best,

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whatever gets their movie up, that's all that matters to them. 

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I mean It sucks each time it sucks when somebody takes 

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advantage of your stuff just to make money for themselves. 

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But each time it's not enough for you to do something about it

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each time it's OK, "oh well know they got my videos that sucks", 

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or "they got my photos that sucks" or "they got my email now that sucks"

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They just don't put it together, there's no 
tipping point

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 where you say "OK finally I am fed up and I'm not going to take it anymore! 

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I am taking back my computer!"

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It just doesn't happen, it's another one of myriad little pains.