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+ - AN UPDATE: PIRACY ON UNVERSITY NETWORKS
+
+[House Hearing, 110 Congress]
+[From the U.S. Government Publishing Office]
+
+
+
+ AN UPDATE: PIRACY ON UNVERSITY NETWORKS
+
+=======================================================================
+
+ HEARING
+
+ BEFORE THE
+
+ SUBCOMMITTEE ON COURTS, THE INTERNET,
+ AND INTELLECTUAL PROPERTY
+
+ OF THE
+
+ COMMITTEE ON THE JUDICIARY
+ HOUSE OF REPRESENTATIVES
+
+ ONE HUNDRED TENTH CONGRESS
+
+ FIRST SESSION
+
+ __________
+
+ MARCH 8, 2007
+
+ __________
+
+ Serial No. 110-29
+
+ __________
+
+ Printed for the use of the Committee on the Judiciary
+
+
+ Available via the World Wide Web: http://judiciary.house.gov
+
+ -------
+
+ U.S. GOVERNMENT PRINTING OFFICE
+
+33-812 PDF WASHINGTON DC: 2007
+---------------------------------------------------------------------
+For sale by the Superintendent of Documents, U.S. Government Printing
+Office Internet: bookstore.gpo.gov Phone: toll free (866)512-1800
+DC area (202)512-1800 Fax: (202) 512-2250 Mail Stop SSOP,
+Washington, DC 20402-0001
+
+
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+
+
+
+ COMMITTEE ON THE JUDICIARY
+
+ JOHN CONYERS, Jr., Michigan, Chairman
+HOWARD L. BERMAN, California LAMAR SMITH, Texas
+RICK BOUCHER, Virginia F. JAMES SENSENBRENNER, Jr.,
+JERROLD NADLER, New York Wisconsin
+ROBERT C. SCOTT, Virginia HOWARD COBLE, North Carolina
+MELVIN L. WATT, North Carolina ELTON GALLEGLY, California
+ZOE LOFGREN, California BOB GOODLATTE, Virginia
+SHEILA JACKSON LEE, Texas STEVE CHABOT, Ohio
+MAXINE WATERS, California DANIEL E. LUNGREN, California
+MARTIN T. MEEHAN, Massachusetts CHRIS CANNON, Utah
+WILLIAM D. DELAHUNT, Massachusetts RIC KELLER, Florida
+ROBERT WEXLER, Florida DARRELL ISSA, California
+LINDA T. SANCHEZ, California MIKE PENCE, Indiana
+STEVE COHEN, Tennessee J. RANDY FORBES, Virginia
+HANK JOHNSON, Georgia STEVE KING, Iowa
+LUIS V. GUTIERREZ, Illinois TOM FEENEY, Florida
+BRAD SHERMAN, California TRENT FRANKS, Arizona
+ANTHONY D. WEINER, New York LOUIE GOHMERT, Texas
+ADAM B. SCHIFF, California JIM JORDAN, Ohio
+ARTUR DAVIS, Alabama
+DEBBIE WASSERMAN SCHULTZ, Florida
+KEITH ELLISON, Minnesota
+[Vacant]
+
+ Perry Apelbaum, Staff Director and Chief Counsel
+ Joseph Gibson, Minority Chief Counsel
+ ------
+
+ Subcommittee on Courts, the Internet, and Intellectual Property
+
+ HOWARD L. BERMAN, California, Chairman
+
+JOHN CONYERS, Jr., Michigan HOWARD COBLE, North Carolina
+RICK BOUCHER, Virginia TOM FEENEY, Florida
+MARTIN T. MEEHAN, Massachusetts LAMAR SMITH, Texas
+ROBERT WEXLER, Florida F. JAMES SENSENBRENNER, Jr.,
+MELVIN L. WATT, North Carolina Wisconsin
+SHEILA JACKSON LEE, Texas ELTON GALLEGLY, California
+STEVE COHEN, Tennessee BOB GOODLATTE, Virginia
+HANK JOHNSON, Georgia STEVE CHABOT, Ohio
+BRAD SHERMAN, California CHRIS CANNON, Utah
+ANTHONY D. WEINER, New York RIC KELLER, Florida
+ADAM B. SCHIFF, California DARRELL ISSA, California
+ZOE LOFGREN, California MIKE PENCE, Indiana
+
+
+ Shanna Winters, Chief Counsel
+
+ Blaine Merritt, Minority Counsel
+
+
+
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+
+
+
+
+
+ C O N T E N T S
+
+ ----------
+
+ MARCH 8, 2007
+
+ Page
+
+ OPENING STATEMENT
+
+The Honorable Howard L. Berman, a Representative in Congress from
+ the State of California, and Chairman, Subcommittee on Courts,
+ the Internet, and Intellectual Property........................ 1
+The Honorable Howard Coble, a Representative in Congress from the
+ State of North Carolina, and Ranking Member, Subcommittee on
+ Courts, the Internet, and Intellectual Property................ 3
+The Honorable John Conyers, Jr., a Representative in Congress
+ from the State of Michigan, Chairman, Committee on the
+ Judiciary, and Member, Subcommittee on Courts, the Internet,
+ and Intellectual Property...................................... 4
+The Honorable Brad Sherman, a Representative in Congress from the
+ State of California, and Member, Subcommittee on Courts, the
+ Internet, and Intellectual Property............................ 5
+
+ WITNESSES
+
+Mr. Cary H. Sherman, President, Recording Industry Association of
+ America, Washington, DC
+ Oral Testimony................................................. 6
+ Prepared Statement............................................. 9
+Mr. John C. Vaughn, Executive Vice President, Association of
+ American Universities, Washington, DC
+ Oral Testimony................................................. 13
+ Prepared Statement............................................. 14
+Mr. Gregory J. Marchwinski, President and Chief Executive
+ Officer, Red Lambda, Longwood, FL
+ Oral Testimony................................................. 17
+ Prepared Statement............................................. 20
+Mr. Jim Davis, Associate Vice Chancellor for Information
+ Technology, University of California, Los Angeles, CA
+ Oral Testimony................................................. 35
+ Prepared Statement............................................. 36
+
+ APPENDIX
+ Material Submitted for the Hearing Record
+
+Prepared Statement of the Honorable Stephen I. Cohen, a
+ Representative in Congress from the State of Tennessee, and
+ Member, Subcommittee on Courts, the Internet, and Intellectual
+ Property....................................................... 63
+Prepared Statement of the Honorable Sheila Jackson Lee, a
+ Representative in Congress from the State of Texas, and Member,
+ Subcommittee on Courts, the Internet, and Intellectual Property 63
+Prepared Statement of the Honorable Lamar Smith, a Representative
+ in Congress from the State of Texas, Ranking Member, Committee
+ on the Judiciary, and Member, Subcommittee on Courts, the
+ Internet, and Intellectual Property............................ 67
+GAO Study of Colleges submitted by the Honorable Howard L.
+ Berman, a Representative in Congress from the State of
+ California, and Chairman, Subcommittee on Courts, the Internet,
+ and Intellectual Property...................................... 68
+Dear Colleague Letter, Curbing Student Digital Piracy on College
+ Computer Networks.............................................. 70
+Top schools receiving the highest volume of DMCA copyright
+ infringement notices from the RIAA beginning in September 2006
+ through mid-February 2007...................................... 72
+Additional material submitted by John C. Vaughn, Executive Vice
+ President, Association of American Universities, Washington, DC 73
+Letter from Dan Glickman, Chairman and Chief Executive Officer,
+ Motion Picture Association of America, Washington, DC.......... 75
+
+
+ AN UPDATE: PIRACY ON
+ UNVERSITY NETWORKS
+
+ ----------
+
+
+ THURSDAY, MARCH 8, 2007
+
+ House of Representatives,
+ Subcommittee on Courts, the Internet,
+ and Intellectual Property,
+ Committee on the Judiciary,
+ Washington, DC.
+ The Subcommittee met, pursuant to notice, at 2:57 p.m., in
+Room 2141, Rayburn House Office Building, the Honorable Howard
+Berman (Chairman of the Subcommittee) presiding.
+ Staff present: Perry Apelbaum, Staff Director and Chief
+Counsel; Joseph Gibson, Minority Chief Counsel; Shanna Winters,
+Minority Counsel; David Whitney, Minority Counsel; and Rosalind
+Jackson, Professional Staff Member.
+ Mr. Berman. This hearing of the Subcommittee on Courts, the
+Internet, and Intellectual Property will come to order.
+ I apologize that we are an hour late; that is the bad news.
+The good news is we won't be interrupted by votes during this
+hearing.
+ I would like to begin by welcoming everyone to the hearing,
+a hearing we have entitled, ``An Update: Piracy on University
+Networks.''
+ And in particular, I want to take a few moments to extend
+my warm regards to the Ranking Member of the Subcommittee,
+Howard Coble. I had the privilege and the pleasure of working
+with Howard when I was Ranking Member and he was Chairman of
+this Subcommittee a few years ago. Somehow things got reversed,
+but the one thing I remember was how fairly he treated me and
+how well I thought we worked together. And I look forward to us
+continuing to work together.
+ Our first hearing, Howard was at a funeral of one of our
+colleagues and so he wasn't here. And I am really looking
+forward to these next 2 years working with him.
+ I am pleased that the other Members and the Chairman of our
+Committee are here.
+ I am going to skip some of my opening statement but not all
+of it.
+ There is little debate about piracy's devastating impact on
+the economy. In 2005, worldwide piracy cost the motion picture
+industry $18.2 billion; the sound recording industry, over $4.5
+billion. That is real money.
+ Currently, there are multiple causes of piracy, and
+universities are not the sole problem. But I am concerned with
+a 2006 study conducted by the LEK Consulting Group, which
+attributed 44 percent of the motion picture industry's domestic
+piracy losses to student piracy, a loss of over half a billion
+dollars.
+ That percentage seemed high to me, especially in light of
+many universities claims that they actively combat piracy. I
+had hoped my request to the GAO, with Congressman Lamar Smith,
+that asked for a study examining the scope of piracy and the
+universities' responses to it, would help to quantify the
+problem.
+ I can only assume that fear of being held accountable for
+their answers, plus discouragement from the American Council on
+Education, prevented 50 percent of the schools surveyed from
+responding.
+ The Joint Committee on Higher Education and Entertainment
+Communities believe that curbing piracy at universities require
+a multi-part solution: Education, enforcement, technological
+improvements and affordable legal alternatives to illegal
+downloading.
+ Many universities have taken these varied approaches to
+curbing piracy. We are going to hear from some of them today.
+ Unfortunately, many schools have turned a blind eye to
+piracy. I don't doubt that there are legitimate issues that
+universities must grapple with, including privacy and cost
+concerns. However, when a university, such as Purdue, tells the
+AP that it rarely even notifies students accused by the RIAA
+because it is too much trouble to track down alleged offenders,
+such action is not acceptable.
+ We invited a representative of Purdue to attend today, in
+part, to thank them for their participation in the GAO study
+and to explain the school's policy, and someone accepted but
+they later declined. Even after receiving over 1,000 complaints
+this year, the second most notices received by any university,
+Purdue still maintains that its students are not repeat
+offenders.
+ Compounding the problem, much of the piracy takes place on
+universities' local area networks, LANs, a place that, unlike
+the Internet, only universities can access and control. Since
+universities are the only parties that can monitor file-sharing
+over their LANs, shouldn't they bear some responsibility for
+monitoring piracy that takes place over their networks?
+ The RIAA released a list of the top 25 schools that
+received the most music theft complaints. Upon the dubious
+distinction of receiving first place on the RIAA's list, Ohio
+University stiffened its policy and now refers students to the
+campus police on the first offense. I suppose a list, such as
+the RIAA list, motivates schools to take action through the
+embarrassment of negative publicity, and to that end, the
+Subcommittee would be interested in seeing the MPAAs top 25
+list.
+ I would like to see the new list 6 months from now also
+with the hope they will effect a change from the schools
+currently listed. And while I am at it, I will be asking the
+GAO for a list to add to the record of the schools that refused
+to comply with the GAO study.
+ The Subcommittee has been looking at the university piracy
+issue for a number of years now, and the scope of the problem
+may require other Committees, such as Education, to engage on
+the issue as well.
+ In addition, individual Members, such as Majority Leader
+Hoyer, and I, and Lamar Smith, and Mary Bono, have explored
+both legislative--Bob Goodlatte as well--legislative and non-
+legislative options for encouraging universities to stop
+piracy.
+ However, when I hear responses, such as Purdue's, to the
+piracy problem, I am concerned that current law isn't giving
+universities enough incentive to stop piracy.
+ The statistics demonstrate that students engage in rampant
+piracy, and while Congress has given universities many
+exemptions from copyright liability, it might be time to
+condition some of those exemptions on action taken by
+universities to address the piracy problem.
+ Perhaps the most ironic issue is that many universities
+expect others to respect and protect their intellectual
+property rights to scholarly works and inventions but seem to
+disregard or close their eyes to the theft of the creative
+works of others.
+ Of all the parties involved in the piracy problem,
+universities are in a unique position to help shape the moral,
+legal and responsible behavior of today's youth. I believe they
+must become partners in ensuring that creators receive
+compensation for the works that students enjoy.
+ I am now pleased to recommend my friend and my partner in
+all of this, the Ranking Member, Mr. Coble.
+ Mr. Coble. Thank you, Mr. Chairman. As you said,
+unfortunately, I missed the first hearing because of Dr.
+Norwood's funeral.
+ Thomas Wolfe, a great man of letters and native North
+Carolinian, once wrote a novel, Mr. Chairman, entitled, ``You
+Can't Go Home Again.'' Well, with apologies to my fellow Tar
+Heel I am back home. I have always regarded this Subcommittee
+as my legislative home, and I am indeed pleased to be back with
+you, Mr. Chairman.
+ And I thank the distinguished Ranking Member from Texas for
+having named me the Ranking Republican.
+ Mr. Chairman, you were a tremendous asset to this
+Subcommittee when I had the privilege to serve as Chairman and
+you the Ranking Member. The bipartisan nature of the
+Subcommittee is one of the great institutional attributes and
+explains why we accomplished a good deal during those 6 years
+we were together. I have no doubt that we will accomplish much
+more under your stewardship.
+ You may remember, Mr. Chairman, back in those days, many
+people in this town referred to this Subcommittee as the Howard
+and Howard Show or some called it the Howie and Howie Show. I
+received a telephone call last week from a reporter from a wire
+service, known to all of you, and she said, ``We are looking
+forward to the return of the Howard and Howard Show.''
+[Laughter.]
+ So we have some supporters still left, Mr. Chairman.
+ But on to the subject at hand. While I have not served on
+the Subcommittee for the past 4 years, I have remained
+intensely interested in its work. One of the priorities for the
+Subcommittee under Chairman Smith and Chairman Berman, as the
+Ranking Member then--he was here earlier but he had to leave--
+was to raise awareness about the impact of student digital
+piracy on campuses and to encourage efforts among persons of
+good will to adopt effective practices to combat such theft.
+ Indeed, this issue has been a bipartisan priority, and I
+commend you, Mr. Chairman, and Mr. Smith. I think you all
+conducted three hearings during the past two Congresses on this
+very subject matter.
+ To those who grew up listening to 45s, 78s and LPs, the
+erosion of respect for intellectual property rights and the
+notion that something of value can be perfectly copied,
+``uploaded,'' and distributed an infinite number of times
+across the public Internet or a private local area network
+without compensating the creator of the work seems fun and
+fundamentally unfair.
+ The ability to do something is not commensurate with the
+right to do it. And those who have the ability to prevent such
+behavior have a moral, ethical and I believe legal obligation
+to do so.
+ Mr. Chairman, we have before us, as you pointed out, a
+diverse panel of witnesses. They will soon present to the
+Members of this Subcommittee testimony that addresses the
+extent of the theft that is occurring on college campuses, the
+range of steps universities have taken or, in the alternative,
+are refusing to take to combat this epidemic of piracy and
+technological measures available today that may help staunch
+the massive uncompensated hemorrhaging of copyrighted works
+attributable to student digital piracy.
+ That concludes my opening remarks, and I look forward to
+working with you and the other Subcommittee Members for the
+next 2 years.
+ Mr. Berman. Well, thank you very much, and thank you for
+those kind words, which you forgot to add that some people used
+to refer to you as Howard the Good and me as Howard the Bad.
+[Laughter.]
+ I am now pleased to recognize the Chairman of the House
+Judiciary Committee, Mr. Conyers.
+ Mr. Conyers. Thank you very much, Mr. Chairman. I commend
+you and the previous Subcommittee Chairman of this Committee
+for their diligent, continued attention to the subject matter
+at hand.
+ We have these hearings to show everyone involved that we
+take this issue very seriously. Despite its importance, there
+remains a disconnect between the problem and an effective
+solution, because piracy on university campuses is still
+rampant and widespread. We are having a problem, obviously, and
+we have to strike the right balance between stemming illegal
+downloading and preserving academic freedoms and privacy.
+ On the one hand, there are, unfortunately, too many schools
+who have done little or nothing to address this problem. These
+schools claim that efforts to stamp out piracy infringe on
+academic freedom and potentially violate a student's privacy.
+ In addition, some universities see no incentive and no
+benefit to trying to police illegal piracy. This to me is an
+unacceptable response.
+ On the other hand, many schools feel they have a strong and
+effective program and are doing everything they can to stamp
+out piracy. I have been checking in the State of Michigan. Two
+universities, the University of Michigan and Michigan State
+University, have detailed policies and practices that both
+educate students and sanction violators.
+ These universities feel that they are doing hard work to
+stop the problem, but they are not willing to police or monitor
+their students and want to preserve the freedom and unfettered
+access that higher education institutions represent.
+ And I think that is what brings us here. There are more
+approaches being used. There is new technology emerging. We
+hope to hear more about it.
+ But it is clear that we cannot allow universities to do
+little or nothing. Campus piracy doesn't just harm the
+copyright owners; it harms the universities as well. Illegal
+use of peer-to-peer networks can lead to invasions of student
+privacy, viruses and other potential security threats to the
+university's network. It uses bandwidth that could be used for
+legitimate purposes.
+ And so we are having this hearing because we are serious
+about the problem. I commend the Chairman and the Ranking
+Member in this endeavor and join in welcoming the witnesses.
+ Thank you, sir.
+ Mr. Berman. We would like to move as soon as possible to
+the witnesses, only because we are starting so late, but
+Congressman Sherman is recognized for an opening statement.
+ Mr. Sherman of California. Business ethics education starts
+with undergraduate education. I believe that the leaders of the
+WorldComs and Enrons of the future will be educated at those
+schools that deliberately facilitate the theft of intellectual
+property.
+ I yield back.
+ Mr. Berman. I thank the gentleman.
+ I think there are no other people on my side who want to
+make an opening statement. I don't know if there is anyone on
+the minority side that wishes to, but, if not, we will go to
+our----
+ Mr. Coble. Mr. Chairman, may I have a unanimous consent
+request to introduce into the record----
+ Mr. Berman [continuing]. Sure. The gentleman is recognized.
+ Mr. Coble [continuing]. The statement by Mr. Smith, the
+Ranking Member of the full Committee and the dear colleague to
+Members of the IP Subcommittee, dated March 6, 2007, and the
+chart to identify the 25 schools that have received the highest
+number of copyright infringement notices.
+ Mr. Berman. In the music area, yes. Without objection, that
+will be included.
+ [The information referred to is available in the Appendix.]
+ Mr. Berman. Our first witness is Cary Sherman, known to
+many of us. He is president of the Recording Industry
+Association of America. As such, he coordinates the industry's
+legal, policy and business objectives and his responsibilities
+include technology, licensing enforcement and government
+affairs.
+ In addition, and of particular relevance to this hearing,
+Mr. Sherman co-chairs the Joint Committee of the Higher
+Education and Entertainment Communities.
+ Mr. Sherman received his B.A. from Cornell University and
+his J.D. from Harvard Law School.
+ Sort of in the hot seat, I guess, for these purposes, John
+Vaughn is executive vice president of the Association of
+American Universities. Appointed in October 1996, he has
+specific responsibilities for intellectual property,
+information technology, research libraries and scholarly
+communication.
+ Dr. Vaughn received his B.A. from Eastern Washington State
+College and his Ph.D. from the University of Minnesota.
+ Our next witness is Gregory Marchwinski. He is the
+president, founder and CEO of Red Lambda, Incorporated, a
+company that markets collaborative grid technology, initially
+developed at the University of Florida, to control file-sharing
+on both peer-to-peer and local area networks.
+ Mr. Marchwinski was formerly the executive manager of Sun
+Microsystems. He earned his B.S. from Carnegie Mellon
+University and his M.B.A. from Rollins College, School of
+Business Administration.
+ And the final witness is from my hometown. He has to leave
+at 4:30 to catch a flight to L.A. If he is planning to catch
+the 5:52, he will not make it. [Laughter.]
+ Jim Davis is both the associate vice chancellor of
+information technology and the chief information office at
+UCLA. In those capacities, Mr. Davis is responsible for the
+school's technology planning oversight and coordinates the
+school's IT policy. He received his M.S. and Ph.D. from
+Northwestern University.
+ There were press reports on the notices received by UCLA. I
+would like to confirm that the reason you, Mr. Davis, were
+asked to testify is because, as compared to many schools, you
+are a leader in trying to address the piracy problem.
+ Your written statements will all be made part of the record
+in its entirety. I would ask you to summarize your testimony in
+5 minutes or less. There is a timing light at the table, as
+many of you know. When 1 minute remains, the light will switch
+from green to yellow and then red when the 5 minutes are up.
+ We welcome you.
+ Mr. Sherman, why don't you begin.
+
+ TESTIMONY OF CARY SHERMAN, PRESIDENT, RECORDING INDUSTRY
+ ASSOCIATION OF AMERICA, WASHINGTON, DC
+
+ Mr. Sherman. Thank you, Chairman Berman, Ranking Member
+Coble, Chairman Conyers and Members of the Subcommittee. Thank
+you very much for holding this hearing today.
+ This hearing will be the fourth conducted in as many years
+on the important topic of piracy on college campuses and the
+bipartisan commitment of this Subcommittee to address the issue
+of piracy where it is most rampant is appreciated by untold
+numbers of creators whose future depends on a legitimate
+digital marketplace.
+ Progress has been made on this issue but not nearly enough.
+A recent study found that more than half of college students
+download music and movies illegally, and according to NPD, a
+market research firm, college students accounted for more than
+1.3 billion illegal music downloads in 2006.
+ The college students surveyed by NPD reported that more
+than two-thirds of all the music they acquired was done
+illegally.
+ The theft of music simply cannot be justified. We have
+transformed our business so that music is now available
+everywhere and anywhere, all the time. Whether online or on
+mobile phones, whether by download or subscription service,
+music has never been as accessible to fans as it is right now.
+And, in fact, our studies show that more music is being
+acquired than ever but less and less of it is being paid for.
+ The ongoing piracy on campus is particularly frustrating,
+given all that we have done to address this issue. We have met
+personally with hundreds of university administrators. We have
+provided both instructional material and educational resources
+to help deter illegal downloading. We commissioned marketing
+campaigns in which students developed communication strategies
+to deter their peers from illegal downloading, and we are
+running their ads in student newspapers. We have spoken out at
+congressional hearings.
+ Working collaboratively and productively through the Joint
+Committee of the Higher Education and Entertainment
+Communities, we have brought to the attention of schools
+network technologies that can inhibit illegal activity. We have
+licensed legitimate music services at steeply discounted rates
+for college students and helped to arrange partnership
+opportunities between universities and legitimate services.
+ We have stepped up our notice program to alert schools and
+students of infringing activity. And we have, as a last resort,
+brought suit against individual file traffickers.
+ On behalf of its member labels, the RIAA announced last
+week a new round of lawsuits, which include 400 students at 13
+colleges and universities around the country. We have also
+introduced a new program in which we encourage university
+administrators to pass our pre-lawsuit settlement notices on to
+students so that they have an opportunity to settle at lower
+cost before suit is actually filed and becomes a matter of
+public record.
+ Lawsuits have always been a last resort for us, but
+deterrence is an essential element in any enforcement program,
+and it does make a difference.
+ It doesn't have to be like this. We take this opportunity
+to once again ask schools to work with us productively to
+address a problem that affects us all. First, we ask schools to
+seriously consider implementing a network technical solution,
+like Red Lambda's cGRID or Audible Magic's CopySense, to block
+or filter illegal P2P traffic without impinging on student
+privacy.
+ Second, we ask them to offer their students legitimate
+online services, like the ad-based Ruckus, that is free to
+users.
+ Third, we ask them to truly enforce the law and their own
+policies against infringement for activity occurring both over
+the Internet and over the school's closed local area networks.
+This means ensuring swift and meaningful punishment when
+caught, not merely warnings which serve only as one free pass.
+ Of course, we also ask them to continue any educational
+initiatives and remind them of resources available through our
+industry and the joint committee.
+ We also ask them to consider, what are you doing to prepare
+your students for the digital future? This is not just about
+music and movies. This is about actively educating students on
+the rights and wrongs of online activity.
+ The transition from physical to digital has completely
+altered the way we live our lives. Shouldn't these changes be
+reflected in schools' message to students? Colleges are charged
+with educating our citizens. Isn't it essential that they
+prepare them to use appropriately the technology that will fill
+their lives?
+ If schools require more personal incentive to teach,
+consider the dozens of hacking incidents of the past few years
+in which IDs, reports and confidential records were stolen from
+school servers. None of us can afford to waste a teachable
+moment.
+ And, by the way, I was delighted to read the testimony of
+Jim Davis at UCLA where he explained that this is precisely how
+they are viewing this issue. But what about the other 3,000
+schools in the country?
+ We invite colleges and universities to work with us to help
+reduce the need for lawsuits like the ones we initiated last
+week. We invite them to reclaim the integrity, efficiency and
+legal use of their networks. We invite them to safeguard the
+value of intellectual property that defines them. And we invite
+them to step up as moral leaders to ensure that their students
+understand that stealing online is still stealing and to teach
+them how to be responsible citizens in the digital world.
+ Thank you.
+ [The prepared statement of Mr. Sherman follows:]
+ Prepared Statement of Cary Sherman
+[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
+
+
+ Mr. Berman. Thank you very much.
+ John Vaughn?
+
+ TESTIMONY OF JOHN C. VAUGHN, EXECUTIVE VICE PRESIDENT,
+ ASSOCIATION OF AMERICAN UNIVERSITIES, WASHINGTON, DC
+
+ Mr. Vaughn. Mr. Chairman, Ranking Member Coble, Members of
+the Subcommittee, I am testifying on behalf of AAU, the
+American Council on Education, the National Association of
+State Universities and Land-Grant Colleges and EDUCAUSE, and we
+appreciate this opportunity for me to be in the hot seat and to
+discuss the work of the higher education community on illegal
+file-sharing.
+ We do take this problem very seriously. Illegal file-
+sharing is unacceptable and challenges our obligation to
+educate students about the legal and ethical behavior that we
+hope to impart to them to make them good citizens.
+ Five years ago, we joined with RIAA and MPAA to form the
+Joint Committee of the Higher Education and Entertainment
+Communities. Let me note just a few of the activities that have
+been carried out since that time.
+ We distributed a white paper on the legal aspects of camps
+peer-to-peer file-sharing to 3,600 colleges and universities,
+and we updated and redistributed that paper last fall. We
+issued a report to colleges and universities on network
+management technologies that might assist in reducing illegal
+file-sharing. We distributed a report on legitimate online
+digital delivery services. Then we worked to bring together
+those services with universities in pilot programs. We reported
+on effective policies and practices identified by universities
+themselves for combating illegal piracy.
+ Just last fall, we organized a meeting of campus IT
+experts, entertainment industry officials and commercial
+technology vendors to take an updated look at existing
+technologies that might be effective in blocking or filtering
+illegal peer-to-peer. These efforts and others have produced
+considerable progress. Now, over 80 percent of colleges and
+universities have institutional policies specifically
+addressing peer-to-peer file-sharing. Over 70 percent of
+institutions shape bandwidth by type of traffic to limit
+possible illegal file-sharing.
+ Between 2004 and 2005, the number of universities engaged
+in legitimate digital delivery services nearly doubled. Ruckus
+Networks, Inc. announced just last week a 33 percent growth in
+subscribers in just the 6 weeks after it made available for any
+college student free music if they have a valid ``edu'' e-mail
+account. Ruckus now draws several hundred thousand students
+from more than 900 colleges and universities. This follows a
+move to an advertising-based business model prompted by data
+that was developed by the University of North Carolina, which
+was working with Ruckus and other vendors in pilot projects.
+ Yet, it is fair to ask, why is the problem still existing
+on campus? First, I should note that illegal peer-to-peer file-
+sharing is a ubiquitous problem; it is not unique to higher
+education. Students come to college with file-sharing practices
+already well-engrained. File-sharing is a widespread activity
+on commercial networks, collectively serving far greater
+numbers of customers than the 17 million college students we
+serve.
+ This is not an excuse for higher education but simply to
+point out that illegal file-sharing is a widespread problem
+that no sector has been able to eliminate. But I would assert
+categorically that no sector has put in more time, effort or
+money in combating illegal file-sharing than has higher
+education.
+ The rapidly growing use of legitimate peer-to-peer provides
+a major technological challenge. It is increasingly critical on
+campus to be able to distinguish between legitimate and
+illegitimate peer-to-peer. Blocking and filtering technologies
+that cannot make that distinction or require reading content to
+do so simply won't work on campus.
+ So where do we go from here? Let me identify three
+immediate actions. In the area of technology, we formed a new
+technology group to work commercial vendors and entertainment
+industry representatives to foster new technologies designed to
+meet campus needs and their networks.
+ In education, we have convened a group of campus officials
+to work with RIAA to revise a video they created for
+orientation last year to try to preserve a strong message and
+create a product that will be widely up-taken by our campuses.
+ For university policies, we will conduct a broad survey of
+colleges and universities to develop a set of refined best
+practices to provide guidance to those institutions.
+ These specific actions will be carried out against a
+backdrop of continued discourse and information sharing within
+higher education and continued collaboration with the
+entertainment industry.
+ So I welcome Cary Sherman's invitation to us. We intend to
+follow through and continue our collaborations.
+ There is no magic bullet, but we will continue to combat
+this problem by seeking to understand better what does work on
+campus and creating new tools to assist in our ongoing efforts.
+ Thank you.
+ [The prepared statement of Mr. Vaughn follows:]
+ Prepared Statement of John C. Vaughn
+ Mr. Chairman and Members of the Subcommittee, I appreciate this
+opportunity to discuss the work of the higher education community to
+address the problem of illegal peer-to-peer (P2P) file sharing on
+college and university campuses. Higher education institutions and the
+national associations to which they belong take this continuing problem
+very seriously. Illegal behavior of any sort is not acceptable, and
+that includes illegal P2P file sharing. Beyond taking actions to
+prevent or punish illegal activity, higher education institutions have
+an obligation to educate students about legal and ethical behavior as
+part of preparing them to be good citizens. Moreover, as both producers
+and consumers of intellectual property, higher education has a direct
+interest in promoting respect for intellectual property and copyright
+law.\1\
+---------------------------------------------------------------------------
+ \1\ In 2005, AAU joined with the Association of Research Libraries,
+the American Association of University Presses, and the Association of
+American Publishers to produce Campus Copyright Rights and
+Responsibilities: A Basic Guide to Policy Considerations, which was
+broadly distributed to colleges and universities (available at http://
+www.aau.edu/reports/Rights--and--Responsibilities--2005.pdf).
+---------------------------------------------------------------------------
+ Accordingly, when the higher education community was approached
+five years ago by the Recording Industry Association of America (RIAA)
+and the Motion Picture Association of America (MPAA) about their
+concerns with campus P2P file sharing, we were eager to work with them.
+Our mutual interest in addressing this concern led to the formation of
+the Joint Committee of the Higher Education and Entertainment
+Communities, and to the continuation and extension of the efforts that
+many colleges and universities already had begun to address these
+issues. Over the ensuing years, we have carried out a number of
+activities under the aegis of the Joint Committee designed to reduce or
+eliminate illegal P2P file sharing on college and university campuses.
+I have attached a list of actions taken by higher education since the
+formation of the Joint Committee; I will highlight here a few of those
+projects:
+
+ White paper: in 2003, distributed a white paper on
+ the legal aspects of campus P2P file sharing, which was updated
+ and re-distributed last year,
+
+ Network management technologies: distributed a report
+ on technologies that may assist in reducing unauthorized file
+ sharing,
+
+ Legitimate online digital delivery services:
+ identified and reported on newly formed legitimate online
+ digital delivery services, and launched pilot project to bring
+ together legitimate services and universities,
+
+ University best practices: distributed a paper
+ documenting university policies and practices for addressing
+ unauthorized file sharing, based on a survey of major
+ universities,
+
+ Student education: cooperated with RIAA to review and
+ distribute a video developed by RIAA for use in college
+ freshman orientation sessions,
+
+ Technology evaluation: organized a meeting of
+ university officials, entertainment industry representatives,
+ and network technology vendors to discuss and evaluate current
+ technologies that might be used to block or filter illegal P2P
+ file sharing.
+
+ This meeting to evaluate network technologies, held last October,
+identified a number of limitations to those products, which were
+acknowledged by both university and entertainment industry participants
+and pointed to the value of universities working with technology
+vendors to develop technology applications adapted for higher education
+institutions rather than trying to force-fit products developed for
+other purposes. Therefore, we have established a new University Task
+Force on Requirements for Filtering Networks, which will work with
+entertainment industry officials and technology vendors to evaluate
+existing technologies and promote the development of new applications
+to improve campus control of network operations, particularly the
+unauthorized distribution of copyrighted content. This group is
+expected to have a report later this spring, and we hope that its
+findings will lead to cost-effective technological solutions
+universities can use to block or filter unlawful content traveling over
+their networks.
+ Over the course of the five years since the formation of the Joint
+Committee, there have been numerous communications with campuses about
+the problem of illegal P2P file sharing and actions that can be taken
+to address it. These communications have taken the form of letters to
+campuses, presentations at meetings of national higher education
+organizations, and informal sharing of practices by colleagues across
+institutions.
+ In addition to actions taken within the higher education community,
+I should mention the impact of RIAA's lawsuits. Since September 2003,
+the recording industry has filed more than 1,000 lawsuits against
+students at over 130 universities and colleges. University
+administrators recognize the right and responsibility of copyright
+owners to defend their content against infringement by lawsuits, when
+necessary; they also recognize that one effect of these lawsuits is to
+send a clear message to students that they are not operating within a
+protected bubble on campus, that illegal P2P file sharing constitutes
+copyright infringement, and that they are liable for such activity.
+ Last week, RIAA announced a new round of lawsuits, which includes
+400 students and 13 higher education institutions. This campaign also
+will provide a ``pre-notice plan'' that allows alleged infringers to
+settle claims before a formal lawsuit is filed. A letter to colleges
+and universities from RIAA President Cary Sherman was transmitted
+broadly across the higher education community in a transmittal from
+David Ward, President of the American Council on Education.
+ What has been the impact of this set of activities? It is clear
+that a great deal of progress has been made. I think it is safe to say
+that five years ago, few university administrators were aware of P2P
+file sharing technologies, the use of these technologies by students
+and the illegality of much of that use, and the implications of P2P
+file sharing for university networks. Although virtually all colleges
+and universities have long-standing campus policies governing the
+appropriate use of copyrighted works, many of these institutions had
+not updated and adapted those policies to the digital revolution
+generally and to P2P file sharing specifically.
+ All that has changed. The 2006 Campus Computing Survey \2\
+indicates that over 80 percent of colleges and universities have
+institutional policies that specifically address P2P file sharing. A
+2005 EDUCAUSE survey \3\ indicated that 73 percent of institutions
+surveyed shape network bandwidth by type of traffic to limit possible
+illegal P2P activity. Although more effective in identifying large
+movie files than smaller music files, this technology nonetheless was
+identified at last October's technology meeting as the most feasible
+current approach for addressing P2P file sharing.
+---------------------------------------------------------------------------
+ \2\ Kenneth C. Green, Campus Computing 2006: The 17th National
+Survey of Computing and Information Technology in American Higher
+Education, December, 2006, The Campus Computing Project, P.O. Box
+26242, Encino, CA. 91426-1242, www.campuscomputing.net.
+ \3\ Brian L. Hawkins and Julia A. Rudy, EDUCAUSE Core Data Service:
+Fiscal Year 2005 Summary Report, November, 2006, EDUCAUSE,
+www.educause.edu.
+---------------------------------------------------------------------------
+ The EDUCAUSE survey also indicated that the number of universities
+engaging legitimate online digital delivery services had nearly doubled
+over the course of one year. Although the absolute number of
+institutions using these services remains small, this one-year growth
+is a very encouraging trend for a business venture that is itself only
+a few years old; the figures presented here were reported as of
+February 2006, only 15 months after the first such campus-based system
+was announced. Moreover, the engagement of legitimate digital delivery
+services is greater among larger institutions: 20 percent of research
+universities offer a legal digital delivery service, and more than half
+are in the process of engaging a service or actively considering doing
+so. Just last week, Ruckus Networks announced a 33 percent growth in
+subscribers to its college-only multimedia service in the six weeks
+since its announcement January 22 that its multimedia digital delivery
+service would be available free to any college student with a valid
+``edu.'' email account. The free delivery service, made possible by an
+advertising-supported business model, has drawn students from more than
+700 colleges and universities to the Ruckus program.
+ Given the considerable efforts from both the higher education and
+entertainment communities, why does illegal P2P file sharing persist as
+a problem? What barriers exist to greater progress in reducing or
+eliminating this activity? First, I should note that this is a
+ubiquitous problem, not one unique to higher education. Students
+increasingly come to college with P2P file sharing experiences already
+well ingrained. Moreover, P2P file sharing is wide-spread on the
+commercial networks serving a great many more customers that the
+roughly 17 million colleges students served by higher education. This
+is not to excuse higher education but simply to point out that illegal
+file sharing is a wide-spread problem that no sector has been able to
+eliminate. But I also know of no sector that has put more time, money,
+and effort into combating illegal file sharing than has higher
+education.
+ Yet cost can be a limiting factor in addressing P2P file sharing.
+at last October's technology meeting, the chief information officer of
+a major research university estimated that the cost to implement one
+proposed filtering technology would be over $1 million initially, with
+annual licensing fees of approximately $250,000. Such costs represent a
+serious financial challenge for colleges and universities, particularly
+at a time when we are trying to address the issue of rising costs of
+attendance for students.
+ In addition, university policies governing academic freedom and
+student privacy come into play as necessarily limiting factors. It is
+essential for colleges and universities to maintain an open, unfettered
+environment for discussion, debate, and dissemination of information.
+Both research and educational programs increasingly use P2P
+technologies for exchange of information. Moreover, the adoption of
+legitimate P2P technologies and uses is expanding beyond higher
+education into the federal government and commercial sectors. NASA is
+using BitTorrent to distribute images and animations of the planet
+through its ``Visible Earth'' program; interestingly, it includes an
+answer in its Frequently Asked Questions to the following: ``I thought
+P2P and Filesharing were illegal!'' (http://visibleearth.nasa.gov/
+faq.php). The National Science Foundation is funding the Ockham digital
+library project, a P2P-based system linking digital libraries, and it
+is clear that P2P applications will play a growing role in the
+distributed digital libraries of the future. Warner Brothers announced
+last year its intention to use BitTorrent to distribute movies and
+television shows.
+ The rapid development of P2P applications supporting research and
+education will play an expanding role in this country's efforts to stay
+at the forefront of competitiveness and innovation, a goal for which
+there is strong bipartisan support in Congress.
+ The use of P2P technologies for legitimate purposes heightens the
+importance of being able to differentiate legitimate and illegitimate
+uses for any technologies intended to block or filter illegitimate P2P
+file sharing. However, given the current state of technology, it can be
+difficult if not impossible to differentiate legitimate from
+illegitimate uses of P2P technologies without invading the privacy of
+personal transactions by reading content. That is something most of our
+institutions understandably refuse to do as a matter of principle.
+ So where do we go from here? What are the projected activities to
+be undertaken by the higher education community? First, as noted above,
+we have formed a new university technology group which will work with
+the entertainment industry and commercial technology vendors to develop
+a methodology for improving the ability of campuses to control the
+unauthorized acquisition and distribution of copyrighted content. This
+methodology will encompass not only content from external sources but
+also from local area networks or LANs existing on campus. The results
+of this effort will be reported broadly to interested parties within
+the commercial technology sector as well as throughout the higher
+education community.
+ Second, we are working with RIAA to consider revisions to the
+student orientation video produced last year. The original video
+generated criticism both from within higher education and from without,
+principally based on perceived inaccuracies or omissions in the message
+conveyed with respect to copyright law. We have assembled a group of
+campus general counsels and chief information officers to review the
+video and the criticisms of it and consider modification that will
+address legitimate criticisms while maintaining a strong message to
+students. The goal of this exercise is to produce an effective
+instrument that will be widely adopted within the higher education
+community.
+ Third, we would like to conduct a survey of a broad selection of
+colleges and universities, covering all sectors, to identify what
+policies and practices are being used to address illegal file sharing
+and, in particular, to identify what procedures seem to be most
+effective in reducing illegal file sharing. Through this effort, we
+hope to identify an updated and refined set of best practices that can
+be widely shared within the higher education community.
+ Along with these activities, the national higher education
+associations will continue to raise the issue of illegal P2P file
+sharing with out member colleges and universities and share information
+through meetings and written communications.
+ Considerable progress has been made, both within higher education
+and within the new commercial sector of legitimate online digital
+delivery services. More work is needed. Our goal is to get as close to
+zero illegal transactions as possible, but we are dealing with changing
+human behavior; continually developing technologies and new challenges
+to them; new and adapting institutional policies and practices; and a
+nascent, evolving legitimate digital delivery service sector. These
+factors and forces are converging and moving in an encouraging
+direction, but they are complex components of the larger digital
+revolution; it will take resolve and shared purpose to work toward our
+goal. We intend to do precisely that.
+
+ Mr. Berman. Gregory Marchwinski?
+
+ TESTIMONY OF GREGORY J. MARCHWINSKI, PRESIDENT AND CHIEF
+ EXECUTIVE OFFICER, RED LAMBDA, LONGWOOD, FL
+
+ Mr. Marchwinski. Chairman Berman, Ranking Member Coble and
+Members of the Subcommittee, on behalf of my Florida-based
+software company, Red Lambda, I thank you for the opportunity
+to speak with you today about digital piracy on campuses, a
+problem that we, as a company, have been working very hard to
+solve.
+ As you may be aware, Red Lambda's technology was originally
+developed at the University of Florida, specifically to combat
+illegal file-sharing on its campus housing network. The success
+of that technology has been shared with this Committee in prior
+testimony.
+ The two network engineers, along with myself, founded Red
+Lambda and have licensed and commercialized the technology
+using the name cGRID::Integrity.
+ Let me be clear about the nature of the problem. Peer-to-
+peer file-sharing is a disruptive technology enabled by the
+phenomenal growth in broadband access. This is even truer on
+university campuses where students have access to far faster
+networks than general population.
+ There are several new technology trends in the peer-to-peer
+arena that are cause for concern. In the past, people would
+almost always share music and movie files in plain view on the
+network. Standard inspection technologies could tell what was
+being sent over the network. Recently, however, in an attempt
+to avoid detection, peer-to-peer protocols have begun to
+encrypt their files during transportation. This lessens the
+chance of users getting caught and renders watermarking
+technology useless.
+ Fortunately, Red Lambda anticipated this trend and
+developed technology that is not dependent upon packet
+inspection and still effective when packets are encrypted. Red
+Lambda's approach is focused on the behavior of the peer-to-
+peer protocol, not the particular movie or song that is being
+transferred.
+ In addition to encryption, it is important to touch upon a
+more technologically subtle issue: Filing sharing on Darknets.
+In the university setting, Darknets operate at a local area
+network, a level such as in a building or dormitory. When two
+or more users on the same local network communicate with each
+other, the data never leaves the local area network.
+ Prior to Red Lambda's technology, this activity remained
+largely undetected. Applications like MyTunes and ourTunes
+proliferated in this environment. These applications are hacks
+on Apple's iTunes system, which permits music to be copied from
+one user to another on these local area networks.
+ cGRID::Integrity's underlying technology approach can
+blanket the entire network, including all local area networks.
+Darknet file-sharing can be detected and enforcement policies
+can be used to monitor and stop these protocols.
+ Another underlying problem associated with the usage of
+peer-to-peer protocols is the distribution of malware, things
+like spam, viruses and worms. A 2006 study found that 15
+percent of the sampled executable files on one peer-to-peer
+network contain viral code with 52 unique viruses. Given the
+virus content, the blocking of peer-to-peer protocols on campus
+networks is an important consideration for network security.
+ With cGRID::Integrity, network administrators can permit
+the use of particular peer-to-peer protocols at their
+discretion, ensuring a campus environment that stops illegal
+file sharers and allows academic freedom to thrive where these
+applications are used for legitimate educational purposes.
+ I would like to stress to the Subcommittee and to the
+educational community at large that Red Lambda is absolutely
+committed to making the technology available to educational
+institutions at a price that is affordable and easily
+sustainable for university budgets. We offer a substantial
+discount structure for universities and stand ready to offer
+group pricing for associations wanting to purchase the
+technology for its member schools.
+ Red Lambda has invested heavily in development areas that
+are important to schools so that our cGRID::Integrity solution
+can easily install in existing network environments without
+necessitating hardware purchases. Red Lambda has created an
+interface that universities can use to easily track and
+identify offenders. It is no longer a burden to track down file
+sharers and identify them.
+ Schools implementing cGRID::Integrity will benefit on
+several fronts, the most important of which promotes
+consistency of principle and ethical behavior. Our universities
+are one of the countries most influential and prolific sources
+of intellectual property. Implementing our technology solution
+ensures that schools are spared the embarrassment and ill
+opinion associated with the careless disregard for digital
+intellectual property rights on their networks.
+ I have provided in my written testimony a Red Lambda-
+created policy guide that can be used by schools to develop
+effective peer-to-peer policies. The policy guide also gives
+examples of ways that schools can use Red Lambda's
+cGRID::Integrity to deliver educational content to the students
+and other network users based on our experience.
+ Chairman Berman, Ranking Member Coble and Members of the
+Subcommittee, I would like to thank you for holding this
+hearing today and inviting me to speak on Red Lambda's behalf.
+I encourage you to exercise your influence to stem the rampant
+flow of digital piracy on campuses.
+ [The prepared statement of Mr. Marchwinski follows:]
+ Prepared Statement of Gregory Marchwinski
+[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
+
+
+ Mr. Berman. Thank you very much.
+ Jim Davis?
+
+ TESTIMONY OF JIM DAVIS, ASSOCIATE VICE CHANCELLOR FOR
+INFORMATION TECHNOLOGY, UNIVERSITY OF CALIFORNIA, LOS ANGELES,
+ CA
+
+ Mr. Davis. Mr. Chairman and Members of the Committee, I
+appreciate the opportunity to appear before the Subcommittee
+again.
+ When I spoke to this panel in 2004, I emphasized how
+seriously the University of California and UCLA take illegal
+file-sharing and copyright infringement. Over this time, the
+University of California has been collectively building on the
+experiences of each of its campuses. We remain as concerned as
+ever about how best to address digital piracy among college
+students.
+ In 2004, I had described our plans to build a three-faceted
+approach involving enforcement, legal services and education,
+with the goal of using what we call a teachable moment for
+affecting student behavior. We did proceed with these plans and
+now refer to the overall strategy as the student life approach
+to copyright infringement.
+ Let me begin my description of the UCLA student life
+approach by observing that we continue to see little digital
+piracy using our main campus resources. The great majority of
+infringement claims sent to UCLA are directed to the
+residential halls and, as such, are concentrated in only about
+20 percent of our total population, a figure that holds true
+across the UC system.
+ Far more UC students live off campus, making them part of
+the vast majority who use commercial Internet service
+providers. We, therefore, believe that a student life approach
+has the greater potential for impact on the piracy problem and
+redirecting skills and undoing perceptions that students bring
+to the campus than just focusing on a technological fix for a
+small population.
+ Our quarantine approach is the reactive enforcement part of
+our strategy, marrying full DMCA compliance with our campus
+judicial process to create this teachable moment.
+ When a copyright infringement notification is received, the
+offending computer is quickly identified, put into quarantine
+so that the file-sharing is effectively blocked internally and
+externally, while access to on-campus student services is
+maintained. Services are restored as a function of the judicial
+process. Technology is used to significantly automate it,
+bandwidth shaping underpins management at the network level,
+technology does not involve monitoring of electronic
+communications, which is prohibited by UC presidential policy.
+ Our primary metric for gauging the success of our strategy
+is the rate of repeat offenses. Since 2004, we have received a
+total of 813 infringement notifications for our residential
+campus population. Only 9 percent have proven to be second-time
+offenders, and the percentage of second-time offenders has
+remained relatively constant.
+ Our analysis of both first-and second-offense cases has
+provided us with valuable input that we have used to adjust our
+judicial responses for both. For example, for second-time
+offenders, we recently strengthened the education component by
+requiring a technical evaluation of their computers to verify
+that the offending materials, along with all file-sharing
+software, are removed. This is based on our finding that 60
+percent of students remain ignorant about how file-sharing
+software works on their computers.
+ We also require students to scan all multimedia files on
+their computer to evaluate whether they are still at risk.
+ Sanctions are served in the unnecessary part of the
+judicial response. Repeat offenders are generally put on 1
+year's disciplinary probation with any further offense
+resulting in suspension. There have been two. We note that the
+possibility of not graduating or being rejected from a graduate
+school because of illegal file-sharing on an academic record
+causes significantly greater anxiety than the threat of paying
+fines.
+ The availability of legal downloading alternatives is the
+second facet of the UCLA strategy. The University of California
+and the California State University systems formed a consortium
+to contract services from digital entertainment providers.
+UCLA's ``Get Legal'' campaign has garnered 20 percent
+participation from campus residents. However, this is a limited
+success story and is particularly disappointing considering the
+extensive local marketing efforts we have put forth.
+ We see several reasons. Foremost, is the incapability of
+service with iPods. Downloads are unusable on the majority of
+students' portable players. Students are also significantly
+confused by legal nuance. For example, they have asked why they
+cannot acquire a television program through P2P methods 12
+hours after the program aired when they can legally record the
+program as it airs.
+ The current business models are just not providing good
+answers for students yet. Until that changes, further efforts
+to promote these services can only make modest differences.
+ The last and most overarching component of our strategy is
+education and awareness. I will only make the point that the
+real value of the student life approach we are seeing is the
+strengthen of weaving the piracy issue into the larger campus
+initiatives about core values and ethics.
+ In closing, I want to emphasize that it is our student
+affairs organization that has taken the lead in integrating
+these facets into existing programs. We are encouraged by the
+student life focus, and I can reaffirm the fundamental premise
+of driving this effort as a student life issue rather than a
+technical issue.
+ I will end with a quote from a February article in our UCLA
+newspaper. This is a quote from student who had just gone
+through the UCLA disciplinary process: ``Patricia said, after
+her disciplinary meeting, she does not intend to illegally file
+share again. `It is just like going to a restaurant or store
+and eating their food without paying,' she said. `I definitely
+see it as wrong now.' ''
+ I thank you for this invitation to speak.
+ [The prepared statement of Mr. Davis follows:]
+ Prepared Statement of Jim Davis
+ a student-life approach to copyright infringement at ucla
+ Mr. Chairman and Members of the Committee, I appreciate this
+opportunity to appear before the subcommittee today. When I spoke
+before this panel in 2004, I emphasized how seriously the University of
+California and UCLA take illegal file sharing and copyright
+infringement. As creators of intellectual property ourselves, we remain
+as concerned as ever about this issue. Copyright infringement, whether
+of software, books, journals or entertainment media, is a problem that
+we cannot and do not ignore. The question we continue to face is how to
+best address copyright infringement and digital piracy by college
+students.
+ As an institution of higher education, several values are
+particularly important to us. Because academic freedom is partly
+dependent on privacy, by University of California presidential policy
+we do not monitor electronic communications. We are equally committed
+to our obligation to help prepare our students for their lives beyond
+their years here and to encourage the core values and ethics that will
+help them to be successful and responsible contributors to society. As
+such, our efforts in tackling the problem of digital piracy in our
+campus community are focused both on sustainable shifts in behavior and
+on addressing the immediacy of the issue.
+ Besides adhering to our responsibilities as a university, we
+believe this emphasis on student life will have benefit to a broader
+community. We continue to see little digital piracy using the on-campus
+resources depended on by our 60,000 students, faculty and staff--
+whether they be computer laboratories, library facilities or networks.
+Rather, most of the claims of infringement sent to UCLA are directed to
+the residential halls, where approximately 12,000 students live. Thus,
+claims of piracy on university resources are concentrated in only about
+20% of the UCLA community; this is true across the University of
+California system as well, with between 20-25% of campus communities
+using network resources involved in piracy claims. Far more UC students
+live off-campus, making them part of the great majority of students who
+use commercial Internet Service Providers to access information and
+services outside the University's purview. Hence, our efforts to affect
+behavior and to instill important core values and ethics in all of our
+students has the potential of a broader impact on the piracy problem
+than simply focusing on a technological fix for a small population in
+our campus environment, a population that is very small compared to
+that of commercial service providers.
+ To be sure, we wish to address digital piracy on our campus. In
+2004, I talked about the ``teachable moment:'' taking a claim of
+infringement and turning it into an opportunity for affecting student
+behavior. It is in this regard that I am pleased to be here this
+afternoon. The University of California as a 10-campus system has been
+collectively building on the experiences of each of its campuses.
+Today, I am focusing on UCLA's student life emphasis in addressing
+illegal file sharing.
+ Based on our three years of experience, I would also like to
+reaffirm that driving this effort as a student-life issue rather than a
+technical issue is key. In 2004, I spoke of UCLA's three-faceted
+strategy for addressing illegal file sharing, all toward the goal of
+shifting student behavior: the Quarantine, which uses automated
+technology to quickly route an allegation of copyright infringement so
+that it can be handled as a campus judicial matter, with the ``first
+offense'' treated as a teachable moment; a proactive push to offer
+legal online entertainment services; and an integrated educational
+campaign.
+ UCLA's Student Affairs organization has taken the lead in pulling
+these three facets together and integrating them into its existing
+programs to imbue our students with a strong sense of ethical
+character, whether in the classroom or in a meeting with the Dean of
+Students. While taking the lead on this issue, Student Affairs has
+worked closely with information technology leaders to build effective
+and efficient processes, and with legal counsel to ensure compliance
+with the law.
+ the ucla quarantine process and the teachable moment
+ The reactive, enforcement part of our strategy for illegal file
+sharing remains the Quarantine process, which marries full DMCA
+compliance with our campus judicial process to create a teachable
+moment. When a copyright infringement notification is received, the
+offending computer is quickly identified and put into quarantine: that
+is, file sharing is effectively blocked internally and externally.
+However, access to on-campus student services such as library resources
+and registration is maintained, recognizing that an individual needs to
+continue to function in his or her educational capacity even as due
+process occurs. The automation involved in routing a claim of
+infringement to the residential halls and putting the proper computer
+into quarantine means that we can direct human effort where it is most
+needed: due process and education. Though this automation is not
+perfect and sometimes requires manual intervention, much is now
+automated and we continue to tune our algorithms to confidently
+increase the number of machine-handled cases.
+ We believe one of the best metrics for gauging the success of our
+strategy is the rate of repeat offenses. Since 2004, we have received a
+total of 813 infringement notifications for our residential campus
+population. Overall, only 9% have proven to be second-time offenders.
+On a year-to-year basis the percentage of second-time offenders has
+remained relatively constant. In some cases, we observed absolute claim
+figures increasing, but feel this may be misleading. For example, we
+believe a substantial increase in graduate student housing since 2004
+(44%) can more than account for the rise in the number of first-time
+claims for graduate students. (Also, though we cannot draw any
+conclusions, during this same period, the proportion of RIAA
+notifications representing first time offenses has decreased--falling
+from 17% to 13% between 2004 and 2006--while claims related to video
+and TV media have increased. Anecdotally, we do see students surprised
+to discover that television programs, for example, cannot be shared
+legally, though they understand that music sharing is illegal.)
+ Such analyses, and our extensive interviews for both first- and
+second-offense cases, have provided us with valuable input that we are
+using to improve the effectiveness of our judicial responses. For
+example, we have found that more than 60% of those identified in a
+second claim of file sharing did not understand that the software was
+still running or how to completely disengage it, one of many findings
+that dispel the common perception that students are technologically
+savvy (rather, they are technologically comfortable).
+ Based on what we see, we are adjusting the process for first-time
+offenders to strengthen the educational component and even more clearly
+define what constitutes infringement. Later this year, we expect that
+those involved in a first-time situation will be directed to a website
+where they will view a short video developed by the University of
+Richmond Law School (http://law.richmond.edu/ipi/whatdoyouthink.htm)
+and then required to answer a series of questions culled from the
+content. Upon submitting correct answers, these students will be
+directed to a UCLA website that provides both an overview and
+explicitly states what is at stake in repeating the act of illegal file
+sharing. These students will then be required to acknowledge that they
+have completed the review and to reaffirm their personal responsibility
+in using campus computing services.
+ For the second-time offender, we have also strengthened the
+educational component: they are required to attend an ethical decision-
+making workshop and write a five-page paper covering any
+misunderstandings they have had regarding what file sharing behaviors
+are acceptable. There are also practical aids we provide: a mandatory
+technical evaluation of their computers to verify that the offending
+materials, along with all file-sharing software, are removed; and a
+list of all multimedia files on their computers so that they can
+evaluate whether they are at risk. Finally, there is a sanctioning
+component, where such repeat offenders are generally put on one year's
+disciplinary probation, with further offenses resulting in suspension.
+We note that for our student population the possibility of not
+graduating, or of being rejected by a graduate or professional school
+because of a sullied academic record from illegal file sharing, causes
+significantly greater anxiety than the threat of paying fines. This
+integrated series of requirements has proven effective, as we have had
+only two repeat offenders who committed further offenses, both of whom
+were suspended from the University for at least one academic quarter.
+ We are looking at infringement cases in a more holistic sense
+judicially as well. A student may demonstrate patterns of behavior that
+indicate a need for help, and treating illegal file sharing as a
+separate issue is not always in the best interests of these students.
+By reviewing their behaviors holistically, we can help them identify
+underlying causes so they can make changes and continue to thrive
+academically.
+ promoting legal alternatives to file sharing
+ We believe legal alternatives are an integral piece of the effort
+to combat digital piracy. To bolster student appreciation for and use
+of legitimate sources of copyrighted material, UCLA has been part of a
+UC-CSU consortium to contract services from digital entertainment
+providers; we have contracted with CDigix, iTunes and Mindawn. Our
+consortium, with its combined student base across the University of
+California and California State University systems, is in talks with
+additional vendors as the landscape changes and new legal services that
+appeal to our students become available.
+ At UCLA we market our legal services mix within an outreach
+campaign entitled ``Get Legal,'' which currently has 20% participation
+from a resident campus base of 12,000. We see ``Get Legal'' as a
+limited success story: successful in that our subscriber base is among
+the larger but limited with respect to overall percentage of registered
+students. The participation rate is particularly disappointing
+considering the local marketing effort put forth, which includes:
+resident hall signage and handouts, presentations at student government
+councils and at information and technology service fairs, quarterly
+advertisements in the student newspaper, highlighted presence on campus
+portal websites, and promotion by the Dean of Students Office at new-
+student orientation sessions. The ``Get Legal'' campaign also maintains
+a visible and high-level presence online, with a campus website (http:/
+/www.getlegal.ucla.edu) to assist students interested in subscribing,
+purchasing, troubleshooting and obtaining account assistance.
+ Though an important component of our three-faceted strategy, it is
+clear that these online digital entertainment services remain
+problematic. First and foremost is the incompatibility with iPods
+(despite local marketing efforts, no UCLA student has signed up for the
+contracted ``CTRAX To Go'' portable player music service because of
+this incompatibility). However, our students also perceive these legal
+services to be limited in content, dependent on specific vendors or
+operating systems, and/or providing an uneven user experience.
+Generally, digital rights management means downloads are often unusable
+or non-transferable onto the vast majority of students' portable
+players.
+ Students are also significantly confused by legal nuance. For
+example, they have asked why they cannot acquire a television program
+through P2P methods 12 hours after the program aired, when they can
+legally record the program as it airs or watch it for free while it is
+streaming from the broadcaster's website later that night. Or why, if a
+song is not available domestically through a legal service, it is not
+okay to acquire it through P2P (this has arisen from some of our
+foreign students). They also wonder why they have more rights with a
+purchased CD that can then be copied, sold or given away than a track
+or album purchased through a legal music service, and why downloads
+purchased online cost as much as or more than their equivalents in
+bricks-and-mortar venues, which they perceive as having significantly
+higher real costs, such as packaging and store overhead.
+ Such concerns are not trivial to students. As creators of
+intellectual property ourselves, we understand the complexity in
+business models, particularly in a nascent area. But we also feel there
+are not good answers to give, because the business models are not yet
+viable. Until that changes, promoting legal services--while a critical
+component in moving forward on the piracy issue--will on its own result
+in only modest changes.
+ education and awareness
+ At an institution where the currency is education, we strongly
+believe that informing students through education and awareness
+campaigns is the best way to make a sustainable impact on the issue of
+piracy.
+ This education takes many forms in addition to those I have
+described. Student Affairs conducts workshops on copyright and ethics,
+meets with student leaders and student government councils about the
+consequences of illegal file sharing, and conducts open forums to
+discuss copyright and the state of entertainment in the digital age.
+Multiday orientation sessions for newly arrived students include Q&As
+with the Dean of Students on intellectual property theft. Anti-piracy
+flyers are posted within the residence halls and official communiques
+are sent to the student body: Digital piracy is a violation of the
+student conduct code: The University will discipline regardless of
+external legal proceedings or financial settlement. It is made clear
+that the University is not a safe harbor, and that we are powerless to
+assist students should lawsuits ensue. In fact, our entire education
+and awareness program is aimed at preventing a student from ever
+getting to that point.
+ Though these individual activities are important, we see even more
+fundamentally the strength of weaving the piracy issue into larger
+campus initiatives about core values and ethics . . . in other words,
+into the student-life experience.
+ All of these efforts, both individual and integral, generate
+discussions that are instructive, helping us both to fine-tune and give
+guidance to our outreach programs and practices. (For example, though
+we have a vast range of outreach initiatives for undergraduates, we had
+not previously focused on education of graduate students--something our
+increased graduate housing has brought to our attention.) We feel we
+have considerable room to grow in this area. A program used across the
+nation, dubbed ``Alcohol Edu,'' seeks to educate freshmen about the
+risks related to drinking and may provide ideas for a similar model.
+ the ethical student
+ The development of our students is a concern of the entire
+University. Though affecting behavior requires a substantial investment
+of time and effort, we believe part of the institution's mission is to
+help prepare our students for their lives beyond our doors, and that
+this is a worthwhile investment. That is why we feel it so important
+that this be driven as a student-life issue rather than a technology
+issue. A purely short-term, defensive or technological solution does
+not afford any opportunity for a teachable moment, or for what we
+consider to be the greater possibility of sustainable changes in
+behavior. Our mission is not shared by organizations outside of the
+educational realm, so we recognize that short-term measures may be
+appropriate in other circumstances, particularly when the piracy
+problem is largely beyond the purview of educational institutions. But
+at UCLA, we are encouraged by what we have seen and continue to be
+enthusiastic about the student life focus.
+
+ Mr. Berman. Thank you very much, all of you; very much
+appreciate your testimony.
+ I would first like to recognize for 5 minutes the Chairman,
+Mr. Conyers.
+ Mr. Conyers. Thank you very much.
+ And I thank you all for your testimony. Many reappearances
+here.
+ Let me inquire of the head of the RIAA people who oppose
+the use of technology to block or filter content argue that it
+invades privacy and could block legitimate content. How is this
+different, if it is, from antivirus technology, which is in
+common use?
+ Mr. Sherman. Well, I think you have got it exactly right.
+It is very much the same as antivirus technology. The way that
+a virus program works is it compares the signature of a file
+with the signature in a database, and if the signature is in
+there it stops the file. That is the way filtering technology
+works in the copyright area as well. So we don't understand why
+there is a perception that somehow this is invading privacy.
+ Furthermore, the applications don't even need to look at
+who sent it, or who is receiving it. All that they care about
+is whether it is the transmission of an unauthorized file in
+which case it is stopped.
+ So we don't see this as a privacy issue, and we feel that
+universities could implement these kinds of technologies very
+effectively without infringing on anybody's privacy rights.
+ Mr. Conyers. Thank you.
+ Mr. Vaughn, do you think that this is a good way to go,
+that we could spread this practice among other universities?
+ Mr. Vaughn. I think there is the sense that the current
+technologies have limitations, either in their clash against
+institutional policies, what Cary said about the non-invasion
+of privacy, to the extent that is true, then it ought to be
+able to be applied to peer-to-peer as well, but there are two
+other problems.
+ One, as I mentioned, the necessity to be able to
+differentiate in any blocking technology legitimate and
+illegitimate. Legitimate peer-to-peer is a rapidly growing
+activity on campus that we want to encourage for research, for
+education. There are cost issues. One proposed technology that
+our group looked at last October would have cost over $1
+million to implement and a quarter of a million dollars to
+annually license. So these are things that we have to work
+through.
+ But that is precisely the reason that we formed a new group
+that is going to meet next week, I believe, to try to take a
+look at this rapidly changing world of technology. And to the
+extent that we can find things that fit our policies, that are
+affordable, and what we really want to do is work with
+commercial vendors who have generally been developing their
+technologies for other markets and explain what we need, how
+our networks work, and see if we can get them to design
+technologies that work for us. So we are going to try to do
+everything we can to pursue that.
+ Mr. Conyers. Does anyone else want to weigh in on this?
+ Mr. Davis, I was going to ask you that cost seems to be an
+issue that universities are concerned with. Do you find that to
+be the case? How is the cost of your program?
+ Mr. Davis. We would always be concerned about the cost,
+and, certainly, in the dollar figures that we are hearing, we
+would certainly take a very close look at that. But I would not
+state that as the primary concern, because if we did see this
+as the best solution for moving forward, then we would try and
+figure that out.
+ Our concerns still remain around the policy and anything
+that gets very close to monitoring content. And we are
+concerned about the increasing legitimate use of peer-to-peer
+kinds of applications.
+ We also are concerned about escalating technology
+approaches. As we go from one technique, we can move to others,
+and there are different ways to take these forward. And the
+other thing that I am trying to make a point non is that we do
+have a small population, and we are interested in putting these
+resources toward the educational piece, as much as these
+technical solutions.
+ Mr. Conyers. Cary Sherman, in the joint committee
+activities, seems like we are off to a slow start. Haven't we
+got a best practices list instituted by all universities yet?
+How fast are we working?
+ You know, after the fourth hearing, everybody is beginning
+to wonder if this is just scheduled once or twice a year to see
+how we are all doing but we don't even come to expect much to
+be happening anymore.
+ Mr. Sherman. I think you have put your finger on it again.
+Progress really has been slow. I have to commend the leadership
+of the joint committee. Their heart is in the right place, and
+they are asking that the right things be done. But follow up
+takes a very long time.
+ The Technology Task Force, for example, it was decided on
+November 1st that it meet, but that meeting has yet to happen,
+there has yet to be follow up on something that was agreed by
+everybody over 4 months ago. When we issued the white paper
+that John referred to, it took more than a year for the
+education community to approve a new draft. The original draft
+was out in a month or two, but it took a year for edits to come
+back for it to be reissued. Progress is very slow. We need much
+faster movement in order for the university community to get
+the sense that this is important.
+ Mr. Conyers. Can we help in any way? Don't they respect the
+powerful Howards that we have here on the Committee? What is
+happening? Do we need to call them in? Do we need a hearing
+with the joint committee?
+ Mr. Sherman. Well, we very much appreciate this hearing
+being held to convey the seriousness with which the Congress
+takes this issue, and we hope that that will help make a
+difference in terms of forward movement.
+ The problem that we have got is that the university
+community at large, which John's views are reflecting on
+technology, for example, about academic freedom and so on,
+those are important values and we understand that, but programs
+like Ares and LimeWire, these are programs that are optimized
+for the exchange of movies and music illegally.
+ They are not really being used for academic purposes. There
+is a theoretical possibility but not a real one. Nobody is
+using it for Shakespeare's sonnets or anything and it seems
+appropriate that when you are faced with that kind of a
+challenge----
+ Mr. Vaughn. Aren't they still covered by copyright?
+ Mr. Sherman [continuing]. That is why it would be okay;
+they are non-infringing.
+ But the overwhelming, if not exclusive, use of these
+programs is for illegitimate purposes. And it seems appropriate
+for universities to reclaim their bandwidth, their own academic
+networks and maintain the integrity of their system.
+ Mr. Conyers. Well, I just hope that the joint committee can
+get moving. I hope they will take this discussion to heart.
+ Let me ask, finally, John Vaughn, is there some particular
+problem at Purdue, the signal offender in all of this, that we
+don't know about or that we should be sympathetic toward if we
+knew?
+ Mr. Vaughn. Let me speak to that. I am aware of the quote
+that generated the attention, and I talked to folks at Purdue,
+and this really is a case of ``not fitting the actual story.''
+ Purdue has a very good story to tell. They have a five-step
+process for treating offenders. They have 19 students on
+probation for the rest of this semester. They take this very
+seriously. They will go after offenders that they detect in
+their own monitoring processes. They don't wait to be notified
+from the outside.
+ They have a variety of education methods: Advertisements on
+the student-run TV program, they use the RIAA video that was
+made last year, they have a legitimate delivery service,
+Cdigix, which, unfortunately, has decided to pull out of this
+business, but they have done about everything they can.
+ So I am not here to be an apologist for Purdue but just to
+say that the quote that we heard doesn't indicate what Purdue
+is doing itself, how seriously it is taking this, more I think
+the attitude of higher education broadly.
+ Mr. Conyers. Well, I am happy and pleased to get your
+response.
+ Mr. Berman. Of course, Purdue was invited to testify, and I
+don't know if we can make reference to Purdue chickened out,
+but---- [Laughter.]
+ Never mind.
+ Mr. Vaughn. Were they here, perhaps I wouldn't have been.
+ Mr. Berman. Mr. Coble?
+ Mr. Coble. Thank you, Mr. Chairman.
+ As the Chairman said, we appreciate you all being here.
+ Mr. Chairman, I empathize with your situation. If the
+universities don't intervene to stop piracy and students often
+times don't recognize they are violating the law, you would
+have little option other than initiating a lawsuit, bring in
+the lawyer. Bringing a lawsuit, however, is always the last
+step, or usually the last step, and can be unpopular.
+ How do you determine, Mr. Sherman, when to take this last
+step, and do the university and students receive a warning?
+ Mr. Sherman. Well, we have a notice program under which we
+have been sending--so far, this year, we have sent 50,000
+notices to universities alerting them to specific acts of
+infringement by users of their system. It was those notices
+that Purdue told the AP reporter they dump and that they don't
+even bother trying to track down and notify the student. That
+is why it attracted so much attention.
+ So, yes, we give students and universities lots of
+opportunities to know about what is going on on their campus.
+But in order to make the point real, in order to show students
+that they really are at risk of consequences by engaging in
+this activity, we sue a number of them, and what we have
+announced is that we are going to sue a much greater number to
+increase the deterrent effect of the lawsuits.
+ And we think it has had an impact on the general
+population. We have done surveys. The number one or two reason
+why people stop illegal downloading is fear of lawsuits. And we
+want to bring that same reality to university campuses.
+ Mr. Coble. Thank you, sir.
+ Mr. Vaughn, do you have evidence that the number or
+economic value of digital piracy on college campuses has
+declined at any point during the past 5 years?
+ Mr. Vaughn. I don't have systematic data, Mr. Coble, but I
+have heard a number of reports from campuses that track this
+and that have identified a declining number of DMCA notices.
+Those that track this closely, in many cases, can attribute it
+to policies that they have taken.
+ That is one of the reasons I think that it is so important
+for us to survey these campuses and identify those that have
+been successful in reducing it, look analytically at what
+procedures they are taking so that we can identify a new set of
+best practices and publicize that broadly.
+ I do think that the lawsuits have an impact, and we have
+talked about this in the joint committee. Students talk to
+students, and one of things that our administrators on campus
+have been dealing with, struggling with, is this sense students
+have that once they are on campus they are in a bubble and they
+are immune from the outside world.
+ And when a lawsuit comes in, it tells them that copyright
+infringement is wrong, illegal file-sharing is wrong, and they
+are going to be held liable for those activities. And that word
+reverberates.
+ Mr. Coble. Thank you, sir.
+ Mr. Marchwinski, let me put a three-part question to you.
+Approximately, how many colleges and universities use your
+software, A; B, is it expensive; and what great obstacles do
+colleges and universities assume or face if they choose to use
+a software program that will help prevent piracy?
+ Mr. Marchwinski. We currently, through our
+commercialization effort, the software is in production at the
+University of Florida where it was developed. We are working
+with three other universities on the implementation of the
+product right now in an early adopter format, and we have
+scheduled implementations in April for several other
+universities across the country.
+ As far as expense goes, our pricing model is one that is
+based on a per user, per year licensing structure, and we
+discount very heavily for the educational space, knowing that
+there are budget constraints and such. We actually will work
+with small institutions to make it very affordable. We don't
+try and gouge anyone. We actually want to address the problem.
+ And as far as obstacle goes with the implementation, one of
+the biggest challenges we have with the software solution is
+when you are implementing a tool into a network, the soundness
+of the underlying architecture of the network needs to be
+evaluated.
+ If you have a network that is a hodgepodge of devices that
+were slapped together as a university grew quickly, it is
+harder to implement a technology solution in that environment.
+If it was well-managed and has grown under a logical plan, it
+is very easy to implement in that environment.
+ Mr. Coble. I got you.
+ Thank you, sir.
+ Mr. Davis, let me put a question to you before that red
+light illuminates in yours and my eye. Commend UCLA for what
+you have done, but has much of the anti-piracy effort at UCLA
+depended upon the anti-piracy software, and how much has
+depended upon your faculty and administrators and maybe even
+members of the student body?
+ Mr. Davis. The real point on our software is that, from a
+technological standpoint, it really is a mechanism to bring
+together the DMC response with the judicial process. So the
+answer to your question is, it is our judicial process that it
+is in play here, not the software.
+ So when I look at it from a judicial process standpoint, it
+gives us the opportunity to bring different situations as they
+occur to our dean of students and bring the students in
+discussion with those people and then bring it into more
+comprehensive programs. That is what we see as working, and
+that is also where we are getting our data, from the students
+directly, as they talk with the dean of students.
+ Mr. Coble. Thank you, sir.
+ Thank you all.
+ I yield back, Mr. Chairman.
+ Mr. Berman. Thank you very much.
+ The other gentleman from North Carolina?
+ Mr. Watt. Thank you, Mr. Chairman. I thank you for having
+the hearing, first of all, and I am delighted to be on the
+Subcommittee. This is my first time here also, because I had to
+miss the first hearing. So this is my first official activity
+on this Subcommittee, so I am delighted to be here.
+ Mr. Vaughn, my ears perked up when you mentioned something
+that was going on at the University of North Carolina, which
+happens to be where the two of us are from, and I didn't
+understand what you were saying was going on at the University
+of North Carolina, so let me get a little clarity about what
+that was.
+ Mr. Vaughn. What I mentioned was that we, early on, tried
+to identify new, legitimate online digital delivery services,
+pair them up with universities in pilot programs to try to get
+these two groups working well together. Molly Broad, under her
+leadership, as president of the University of North Carolina
+system and also, incidentally, as an active member of the joint
+committee, went back to the system and said, ``Let's implement
+a broad set of experiments across campuses.''
+ So they had different campuses working with different
+vendors, using different policies. All of them used the same
+sort of three-part structure that Jim Davis mentioned of
+education, enforcement, using new alternatives, but what I
+mentioned was that data collected by the University of North
+Carolina in its pilot program fed to Ruckus and gave Ruckus the
+basis for moving to an advertising-based business model, which
+then allowed them to offer music free to students, any student
+that had an ``edu'' valid e-mail.
+ And Ruckus announced last week that they have had a 33
+percent growth in the number of subscribers since they made
+this program available. And that was fed by this interplay
+between Ruckus and the University of North Carolina. So it was
+one of these productive interrelationships that has really
+helped to advance this.
+ Mr. Watt. I understand most of the schools in the
+University of North Carolina system are tied into this Ruckus
+system. Is that working effectively?
+ Mr. Vaughn. I think it is working very effectively. They
+are actually working with four different vendors, but I believe
+Ruckus is the dominant one, and it is used on, I think, just
+about every one of their campuses.
+ Mr. Watt. It seemed to me that despite the fact that you
+and Mr. Marchwinski are sitting side by side, that you all are
+miles and miles apart in terms of what you were saying. I took
+from what Mr. Marchwinski was saying that there is technology
+coming online that is going to--or is maybe already online--
+that could really solve a lot of these problems.
+ So let me ask the two of you, first of all, Mr.
+Marchwinski, I noticed that you went out of your way not to
+talk too much about the cost of this system, and Mr. Vaughn
+talked about a system that would cost the university in the
+neighborhood of $1 million with a royalty fee or renewal fee
+every year of about $250,000.
+ You obviously are not all that interested in talking about
+the specific cost, but are we anywhere in the ball park that
+made Mr. Vaughn shutter, the $1 million figure, or is that far,
+far, far away from where you are talking about?
+ Mr. Marchwinski. Far, far, far away from what I am talking
+about. When you look at our cost structure and the way that we
+discount it in the university space, we are literally talking
+about cents per under $1 per month, per student to use our
+technology. It is discounted substantially into that sector.
+ Mr. Watt. Well, let me see, if I multiplied $1 per month,
+per student, that is $12 a year, multiplied times the number of
+University of North Carolina, that could be a fair, fair amount
+of money.
+ Mr. Marchwinski. That is a suggested retail price, which we
+discount from.
+ Mr. Watt. Okay.
+ Mr. Marchwinski. It is based on volume. We can actually
+reduce that significantly.
+ Mr. Watt. Mr. Vaughn, maybe I should allow you the
+opportunity to tell us about some of your concerns or downsides
+about what Mr. Marchwinski testified about.
+ Mr. Vaughn. Well, let me say, first of all, the costs I
+mentioned was for a different technology, so I was not
+referring to Greg's technology. Greg was part of the meeting we
+had last October. Our concern at the time----
+ Mr. Watt. You are cheating. You get to call him Greg. I had
+to----
+ Mr. Vaughn. Well, we have worked together----
+ Mr. Watt. I am joking, go ahead.
+ Mr. Vaughn. That technology can't distinguish between
+legitimate and illegitimate peer-to-peer activity, but he has
+mentioned that there have been developments and refinements.
+This is something we want to look at, and that is precisely why
+we have this new committee to understand--this is a very
+rapidly--this technology is changing so rapidly, so what we saw
+in October may be different now.
+ I must say that just yesterday EDUCAUSE had a live Webcast
+featuring Illinois State, which is a university that has been
+working very closely with RIAA and MPAA on a whole range of
+options to try to deal with illegal file-sharing. They are
+looking at technology, at education, at enforcement. They are
+doing us all a very good service of looking at this. And it was
+their sense yesterday that we still don't have a technology
+that works, but we may be getting closer, and we are going to
+keep looking at that.
+ Mr. Watt. Thank you, Mr. Chairman.
+ Mr. Berman. The gentleman from Florida, Mr. Feeney?
+ Mr. Feeney. Thank you, Mr. Berman.
+ And we are glad for all the witnesses who are here. This is
+a very important issue to the Congress.
+ Mr. Vaughn, I was glad to hear the defense of--I am a
+fellow Big 10 guy, I am from Penn State, and glad to hear that
+Purdue is performing better and that blue mark doesn't really
+represent their activity and their interest in protecting
+intellectual property. You would think a great technological
+university would have a particular understanding of the
+importance of intellectual property, and that is good to know.
+ I know that professors who right the textbooks on a regular
+basis understand intellectual property when it has to do with
+the unauthorized copying or use of their textbooks, and I would
+hope that the joint committee appreciates that a lot of us in
+Congress believe deeply that, yes, the mission of every great
+university is to pass on academic excellence, but also
+citizenship standards and character building ought to be a
+great part of the university experience.
+ I was glad to hear, even though it is anecdotal, about
+Patricia's experience. She learned a great lesson going through
+college, and I am afraid for the university students who are
+learning the opposite lesson, that the way to go through life
+and enjoy the music or art or literature of whatever of your
+pleasure is to get technological astute and to be able to,
+essentially, be modern-day pirates, even though they don't look
+at it like that.
+ And, I guess, finally, Mr. Vaughn, I would encourage you,
+if 80 percent of the universities have adopted a policy, that
+means 20 percent have yet to even try or at least think about
+it in a serious way, and then enforcing the policy is critical
+too.
+ I mean, China has pretty good laws on the books with
+respect to protecting intellectual property. It is the
+horrendous job they do enforcing it that leaves Mr. Sherman's
+companies and many other U.S. companies totally exposed so that
+somewhere on the order of 80 to 90 percent in some areas of
+technology and music and video is pirated use in China. So the
+enforcement is critical, and that is why I am so interested in
+the technological issues.
+ Mr. Marchwinski, are you able to tell some of the three
+universities that you are moving into here in the next few
+months or expect to? You don't need to if you don't want to.
+ Mr. Marchwinski. Actually, can't tell you about those right
+now until they actually----
+ Mr. Feeney. Very good.
+ Mr. Marchwinski [continuing]. Release the actual names out
+into the press.
+ Mr. Feeney. Well, very good. I happen to know of a couple,
+and I am delighted to hear those.
+ Mr. Vaughn, had some legitimate arguments, and Mr. Davis
+did too, and I would like you to address them specifically.
+ Number one, on the cost argument, and I don't want to do
+your negotiating for you anymore than the former gentleman from
+North Carolina did, and since we fund universities, as a former
+State legislator, we fund universities, I want to see good
+taxpayer value for anything that universities are purchasing.
+ But are you a monopoly? Are you the only company that is
+doing this work in the industry?
+ Mr. Marchwinski. No, absolutely not. There are many
+providers out there, some that have grown up in different
+sectors of industry, work management----
+ Mr. Feeney. Good. The more the merrier. Hopefully, there
+are lots of competent companies. It may be bad for you, but it
+is good for a pricing mechanism that will meet the needs.
+ Mr. Vaughn, I think fairly, said that there are lots of
+legitimate peer-to-peer uses that he is afraid some
+technologies would be undermined. Does your current technology
+have the ability to save legitimate and authorized peer-to-peer
+uses while stopping pirating?
+ Mr. Marchwinski. We have enabled peer-to-peer protocols
+based on a set of policies that the administrator in that
+institution implements.
+ Mr. Feeney. And Mr. Davis talked about the strong interest
+every great university has in privacy and academic freedom.
+Does your technology preserve privacy and academic freedom?
+ Mr. Marchwinski. Yes. We actually don't look at the content
+of the packets because of that key concern.
+ Mr. Feeney. And it seems to me the one argument that is
+going to be difficult for the technology proponents to meet is
+Mr. Davis' legitimate one, that about 80 percent of his
+students reside off campus. Certainly, that is true of a lot of
+universities. You are talking about on-campus computer networks
+so that off campuses could be very difficult, if not
+impossible, to get to with your current technology; is that
+right, too?
+ Mr. Marchwinski. That is correct. There is one thing that
+can be done in the wireless networks that are available for
+drop-in students. An effective policy can still be put into
+place on those networks. So even transient schools or community
+colleges who have no permanent residents there can effectively
+put a policy in place.
+ Mr. Feeney. Well, and finally, I want to recognize the
+joint committee who has been chaired recently by the president
+of my alma mater, Graham Spanier. He has done a terrific job at
+Penn State, and now the president of Maryland will take over.
+ And I hope that while we have made some progress, as Mr.
+Vaughn and Mr. Davis point out, in 5 years, I hope that
+everybody will understand just how critical this is, both in
+preserving intellectual property rights but just as importantly
+in building character and strong citizens.
+ One of the complaints about our prison system in America is
+we tend to send people to prison and they tend to come out more
+expert thieves, and I hope we will not be saying that about our
+university students with respect to intellectual property 5 or
+10 years hence.
+ With that, I yield back the balance of my time.
+ Mr. Berman. I thank the gentleman.
+ The gentlelady from Texas is recognized for 5 minutes.
+ Ms. Jackson Lee. Thank you, Mr. Chairman. Let me thank you.
+Looks like we are going down a path of innovativeness, and I
+thank you very much for your leadership. I think it is
+important to address issues--I am a new Member of the
+Committee--but address issues to maybe weave our way through a
+legislative fix or maybe some helpful suggestions.
+ I happen to agree with Mr. Sherman. I, frankly, believe
+that colleges have not done enough. And I have a college
+student, and I have a number of college campuses in my
+hometown, and I am always eager to be supportive with as much
+information as one could possibly give.
+ It is interesting, I don't know how many, Mr. Sherman,
+students are doing their final thesis or taking an exam on the
+most recent music notes that they are drawing down, but I am
+sure some would argue that this an educational factor, but I
+don't know how many professors are testing folk on the latest
+brilliant work of, I think, Lil Wayne or Jay-Z.
+ So I am curious because I believe that inquisitiveness
+should be applauded and certainly the kind of unique expertise
+that college students have developed because they are children
+of the 21st century and children of technology. It hurts my
+heart that many do not pick up a book but would rather see it
+digitally and however else they might get it.
+ So I am going to pose a question to both Mr. Vaughn and Mr.
+Davis, just to comment on this issue of campus piracy. And I am
+not going to say it is a big problem, because I don't want to
+label the whole, if you will, it is not an industry, but the
+whole community, whole academic community, whole community of
+higher learning institutions.
+ But if it is a problem, and if it is widespread or its
+growing, is there some thought to charging students a fee, akin
+to your student activities fee, enhancing it, and finding some
+set fee to pay as relates to the downloading of money and send
+those dollars to the artist or their royal representative?
+ Because it seems to be an ongoing issue. And, of course,
+you just made mention that Purdue is trying to work through it
+or other universities are trying to work through it. I don't
+know if we are going to find a common ground.
+ We have been through these questions before about
+protecting the work of artists. We have been through it before,
+from my perspective, from, I would say, the aging artists, the
+artists of the 1960's, Motown and others who talk about it on
+radio and whatever else, those old days when they started
+talking about and now they are using it for advertising and
+otherwise and not paying them any royalty. Now, we have, sort
+of, a next step.
+ But have you thought about any way of compensating, some
+structural way of compensating which way, if you will, put a
+stop gap to Federal legislative fixes?
+ And I ask Mr. Vaughn and Mr. Davis.
+ Mr. Vaughn. Well, there are two dimensions to a fee,
+Congresswoman.
+ First, the sort of fee I believe you are talking about is a
+fee that might be akin to the way that artists are compensated
+for music in restaurants and other big public places where you
+can't put a fee on a single transaction and there are
+compulsory licenses that are negotiated by BMI and ASCAP and it
+is very complicated, but it has been reasonably successful over
+decades, and there have been proposals that that might be one
+of the ways to deal with peer-to-peer file-sharing as well.
+ That wouldn't be a university issue; that is a nationwide
+corporate issue, and Cary can speak to this. I think that RIAA
+and MPAA don't like that. We are neutral on it.
+ The other aspect of a fee is charging students a fee for
+the music, and this is something we have talked about in
+working with the legitimate delivery services. iTunes has
+managed to 99 cents per song, and it is wildly successful. Most
+of our universities that are working with legitimate delivery
+services--and there is a cost to that--try to make it something
+other than a song per transaction fee to the student.
+ So the university might cover the full cost outright. It
+might be embedded in a student fee per semester, but our
+concern is that if there is a fee per transaction for
+legitimate services and it is up against illegal free
+transactions, it makes it easier for illegal to outcompete
+legal.
+ Ms. Jackson Lee. Mr. Chairman, if you would indulge me, I
+was watching that green light steadfastly and it never went to
+the middle light. I would appreciate if I could get the
+panelist I asked to answer, Mr. Davis.
+ I would appreciate it, Mr. Chairman, if----
+ Mr. Berman. Mr. Davis, could you answer?
+ Ms. Jackson Lee. And I would appreciate--could Mr. Davis
+just yield for a second? If Mr. Sherman could just say a yea, a
+nay or a sentence, then I will go to Mr. Davis, because he has
+been referred to by, ``don't like it,'' but what is your fix or
+is that something we can reasonably talk about?
+ I am not wedded to the structure; I am wedded to the
+concept.
+ Mr. Sherman. The industry has concluded that if we can give
+it away for free, it has to feel like free, and, therefore, we
+have granted licenses to companies offering college students
+access to 2 million, 3 million tracks of music on demand at
+such low prices that they are a fraction of what is offered in
+the commercial marketplace.
+ Ms. Jackson Lee. Does the university buy it or a company
+buys it?
+ Mr. Sherman. It can go either way. At Penn State, they paid
+for it, and they have it in their budget and offered it to
+students and it had a very good take-up rate. At other
+universities, they charge each student for it, and that becomes
+more difficult.
+ We are talking about a couple of bucks a month, even for a
+student paying for it himself, for all the music that they want
+legally.
+ Ms. Jackson Lee. Mr. Davis, thank you.
+ Mr. Davis. Our thinking has been tied with what I referred
+to in the verbal testimony with the business models, and so we
+have gone down the path of what is the right model for the
+student.
+ And so I do want to come back and make the point that one
+of the things that we are seeing is the existing models, the
+legal services, are not providing good answers for the
+students. And so we really see that as a major thing to take a
+look at, and if that can be resolved or changed and so forth,
+we get ourselves actually set up in a much, much better
+position to talk about the fee or the funding of this.
+ Ms. Jackson Lee. Thank you.
+ Mr. Berman. The time of the gentlelady has expired.
+ Mr. Davis, we are going to excuse you now. Based on my
+comment, you have revised your time of departure to 4:15, and
+you are still going to have a close call if it is the 5:52.
+ Mr. Goodlatte?
+ Thank you for coming, and if there are specific questions
+for you from any of the Members, I assume you would be prepared
+to respond in writing to those questions.
+ Mr. Goodlatte. Thank you, Mr. Chairman, and thank you for
+holding this hearing.
+ I appreciate the testimony of all the witnesses.
+ Mr. Vaughn, I believe that gathering facts about current
+practices that colleges and universities are using to combat
+privacy is extremely useful.
+ Would you commit to helping encourage colleges and
+universities to comply to requests for information about their
+efforts on this front so that Congress can make some informed
+judgments about the best next steps to take here?
+ Mr. Vaughn. Mr. Congressman, there may be a reference there
+to the GAO study that was carried out last year, and in that
+study, we and our allied associations all initially strongly
+encouraged participation, but when we learned that, contrary to
+the usual practice in those sorts of studies with higher
+education, GAO was not going to preserve anonymity of
+individual institutional data, we informed the campuses of
+that, and that caused a drop in the rate.
+ And I understand that there is interest in having
+information on specific universities, but there is also a
+concern about how data would be used, how it would be
+interpreted. There are widely different views about what
+technology is effective or not effective, and if you have a
+view of technology A and university B isn't using it, then that
+gives a certain slant to that institution.
+ What we would like to do, and whether we do it or GAO does
+it, is get a broad survey of institutions. We can preserve
+institutional anonymity of data but still collect by sector to
+understand what is happening in large institutions, small
+institutions, community colleges versus research universities.
+We could look at analytic questions about not just technologies
+but----
+ Mr. Goodlatte. Let me cut you off there. I take it that is
+a yes, with conditions.
+ Mr. Vaughn. A yes, with conditions.
+ Mr. Goodlatte. I have got some other questions I want to
+ask you, so let me move on to those. I have introduced
+legislation and plan to soon reintroduce legislation to combat
+the use of spyware on users' computers, which is used to
+collect personal information.
+ Now, as you know, many file-swapping technologies either
+include spyware programs or are used by hackers to install
+spyware programs onto users' computers. Given the recent swath
+of data breaches, are universities concerned that illegal file
+swapping could contribute to data breaches on their own
+systems, which contain personal information about students,
+parents, alumni?
+ Reflective of your concern about who has access to
+information that you mentioned in your last answer, what are
+universities doing to prevent these types of breaches from
+originating through file-swapping technologies?
+ Mr. Vaughn. Well, one of the things that we try to do in
+education programs is to make clear to students what a great
+risk these illegal file-sharing technologies bring to the
+students, their computers and to the whole system. That is a
+very serious problem. So it is one of the motivations, both to
+try to educate the student so it is a deterrent for them but
+also for us to try to protect our systems.
+ As I understand, I am not a technology expert, it is hard
+for the network manager to get direct control over that, but it
+is a serious problem, and we are doing everything we can to try
+to combat that sort of degradation that potentially comes with
+illegal file-sharing.
+ Mr. Goodlatte. Well, let me ask you about that, and I will
+ask Mr. Sherman about this too. I just have become aware of
+some technology. One of the reasons for this hearing is for us
+to look at enforcement efforts and technologies that are
+available to colleges and universities--I know Mr. Marchwinski
+is certainly interested in that as well--to stop illegal P2P
+file-sharing.
+ I am aware of some technology that claims to stop virtually
+100 percent of illegal peer-to-peer transmissions while
+allowing legal peer-to-peer transmissions to continue by
+looking for certain markers and so on in what is being
+transmitted that would indicate whether or not it is
+copyrighted or not. It would not interfere with legal P2P
+transmissions continuing, which I know is a great interest of
+the universities.
+ It would also maintain user anonymity, not use additional
+bandwidth or slow down the network and not require technical
+staff support.
+ I wonder, Mr. Sherman, are you aware of technology like
+this? Have you looked into it? Are you interested in that sort
+of thing?
+ Mr. Sherman. You might be referring to SafeMedia's Clouseau
+product, which came to our attention yesterday. We have asked
+them to brief us on it, and we would certainly want to bring
+them before the Technology Task Force for this technology to be
+evaluated.
+ I think what this illustrates is how quickly the
+technologies are coming online in this area, and the
+opportunities to take advantage of technology are real. We just
+have to have an open mind to exploring the benefits of
+technology here rather than rejecting it outright.
+ Mr. Goodlatte. Mr. Chairman, I know my time is expired. I
+wonder if I might ask if Mr. Vaughn would answer the same
+question in light of whether his association would be
+interested in--I am not endorsing any particular technology but
+when I become aware of technology that might solve your problem
+and the problem that the Congress is trying to address, I would
+like to know whether that is something you would be looking at?
+ Mr. Vaughn. Absolutely. I thought what you were describing
+sounded a lot like Audible Magic to me, which has a lot of the
+properties you described. It is very expensive, and it has to
+be implemented across every switch. But precisely because
+technology is changing rapidly and we have a real interest in
+that, if we could identify a technology that is affordable,
+that can differentiate legitimate from illegitimate, that
+doesn't invade privacy or read content, we would jump at that.
+ Mr. Berman. The time of the gentleman has----
+ Mr. Goodlatte. Thank you.
+ Thank you, Mr. Chairman.
+ Mr. Berman [continuing]. The time of the gentleman has
+expired.
+ The gentleman from Florida, Mr. Wexler?
+ Mr. Wexler. Thank you, Mr. Chairman. I, too, want to thank
+you for conducting this hearing.
+ I was wondering if I could inquire of Mr. Vaughn. My
+understanding is, if I have got it right, that MySpace and
+YouTube are--they didn't start here but they have moved to a
+point where they are beginning to filter out copyright works.
+They didn't always conclude that was their obligation, but it
+seems to me, if I understand it correctly, they are moving in
+that direction.
+ And I was wondering if you could share with us whether or
+not universities and colleges are doing the same.
+ Mr. Vaughn. Well, we don't have the same issue that--I
+think that would be analogous to material that would be
+residing on our servers, and we have an absolute obligation to
+make sure that we are not infringing or we would be sued in
+that case. So we take that part very seriously.
+ But with peer-to-peer technology, which is conduit traffic
+that doesn't directly reside on our servers, we have a
+different problem. We are trying to do everything we can to
+avoid illegal file-sharing, which is analogous to YouTube
+putting up some copyrighted material without permission, which
+is not acceptable.
+ Mr. Wexler. Could you share with me in your testimony--and
+I apologize, I didn't hear your oral testimony--in your written
+testimony, you cite the 2006 campus computing survey, which
+indicates 80 percent of universities and colleges now have
+institutional policies that specifically address file-sharing.
+ Share with me, I am a freshman at X college, one of these
+80 percent colleges, and I show up, big van and all of the
+packages, and I get my meal card and move into the dorm. What
+process occurs in these 80 percent colleges to that new
+freshman to make that freshman aware of these university's
+policies?
+ Mr. Vaughn. One of your colleagues just brought up earlier
+the difference between having a policy and activating and
+enforcing a policy, and so, frankly, my guess is that the range
+of ways that that 80 percent deals with that policy is fairly
+large.
+ But what is increasingly happening is that when freshman
+get on campus, this is a central part of their orientation.
+They are informed about the policies. We are going to work with
+RIAA to try to get a broader uptake of a video that will kind
+of catch their attention so that they learn about the policies.
+An increasing number of institutions will ask them to sign an
+acceptable use agreement.
+ And I should say that our campuses have, for decades, had
+acceptable use policies dealing with copyrighted material, but
+I would say 5 years ago not very many of them had that
+translated specifically into peer-to-peer file-sharing. Now,
+what they have a copyright policy that is specific to file-
+sharing to make it available to students when they come in.
+They inform them that that is going to be enforced, and when
+they are detected violating that policy, the sanctions come
+into play.
+ Mr. Sherman. If I could just add to this. When we did our
+orientation video, we did surveys pre and post in order to see
+the effectiveness of the video, and what we found was that
+although many of the universities had these policies, students
+simply weren't aware of them. The video helped reinforce the
+notion that this is against campus policy and they could lose
+Internet access if they engaged in illegal activity. So the
+policies may be there, but people just don't know about them.
+ Mr. Wexler. Would you agree, Mr. Vaughn, that it appears
+students, by and large, are not aware of the policies?
+ Mr. Vaughn. Well, I think that has been the case, and that
+is what is changing, and we want to take actions to make it
+change further. That is why we want to identify these best
+practices. At a large university, with a lot going on and
+students coming in for the first time, there is a lot going on,
+but institutions have figured out how to get this message
+across, and we want to spread their message across the higher
+education community.
+ Mr. Wexler. Thank you.
+ Mr. Berman. The time of the gentleman has expired.
+ The gentleman from Florida--the other gentleman from
+Florida.
+ Mr. Keller. Thank you, Mr. Chairman.
+ I approach this issue with a somewhat unique perspective. I
+care very much about intellectual property rights, having been
+on this Committee for now 7 years and representing major
+intellectual property interests like Disney and Universal,
+frankly, and also am very close with the universities. I was,
+until recently, the Chairman of the Higher Education Committee
+and am now the Ranking Member.
+ And so last year I was able to successfully include some
+language into the Higher Education Act, H.R. 609, which set
+aside grant money that universities could apply for that would
+help them in purchasing these sorts of technologies and to make
+an effort.
+ In the interest of straight talk, I think that as we move
+forward, and caring very much about both groups, I would say,
+Mr. Vaughn, I would tell the folks you represent that I see a
+sea change coming a little bit. I think any university that
+throws away infringement notices or relies on the old excuses
+of academic freedom or privacy and doesn't have a best
+practices policy, is not interested in technology, I will say
+the hammer is coming, and it is probably going to come sometime
+later this Congress.
+ And so I want to see universities get serious about it. And
+I know that some are.
+ Let me begin with you, Mr. Marchwinski. This technology was
+developed at University of Florida?
+ Mr. Marchwinski. Correct.
+ Mr. Keller. Before the technology was implemented at
+University of Florida, what was the situation like in terms of
+bandwidth being used and getting notices of violations?
+ Mr. Marchwinski. There was approximately 70 percent of the
+bandwidth was being consumed by peer-to-peer services, and
+between 50 and 80 DMCA complaints were being received per
+month.
+ Mr. Keller. After the technology was implemented at
+University of Florida, what was the situation like in terms of
+bandwidth and notices?
+ Mr. Marchwinski. The bandwidth dropped significantly to 20
+percent of its prior measure, and since then, the DMCA
+complaints in the residence halls, they have received one in 4
+years.
+ Mr. Keller. So, virtually, to nothing.
+ Mr. Vaughn said that some technologies can't distinguish
+between legitimate and illegitimate file-sharing. Can your
+technology make that distinction?
+ Mr. Marchwinski. No. That is quite the opposite approach.
+We actually take it at the protocol level. And the reason we do
+that is to preserve the privacy of the content of the packet.
+Any technology that tries to distinguish legitimate versus
+illegitimate is looking at the content.
+ Mr. Keller. So you don't look at the content.
+ Mr. Marchwinski. We do not.
+ Mr. Keller. Well, if a person is legitimately downloading a
+song from iTunes, would you software block it?
+ Mr. Marchwinski. No, it would not.
+ Mr. Keller. Okay. If they were illegitimately downloading a
+song from Kazaa would your technology block it?
+ Mr. Marchwinski. Yes, it would.
+ Mr. Keller. Okay. Does your software violate student
+privacy?
+ Mr. Marchwinski. We don't believe it does.
+ Mr. Keller. And why is that?
+ Mr. Marchwinski. Because of the condition of not looking at
+the actual contents of the packet. We do monitor based on the
+overall protocol, the behavior of the network, and follow the
+policies that the administrators in that institution set.
+ Mr. Keller. Does your cGRID software impinge on academic
+freedom?
+ Mr. Marchwinski. Absolutely, not. For institutions that
+want to use peer-to-peer for legitimate use, it is a simple
+rule that we establish in our policy manager that allows them
+to use it for that purpose. We can break it down by logical
+subgroups, a particular class, a particular grade level, a
+particular user community and share that in the policy so that
+it is enabled.
+ Mr. Keller. Okay.
+ Mr. Vaughn, I sometimes hear the defense of academic
+freedom. Just so we are clear on where you stand, would you
+agree with me that under no circumstances is the defense of
+academic freedom an excuse to illegally download music or
+movies?
+ Mr. Vaughn. Absolutely, no question.
+ Mr. Keller. Okay.
+ Back to you, Mr. Marchwinski. In terms of those situations
+where an institution has opted not to used your product or one
+of your competitors' products, what reasons do you hear for
+them declining?
+ Mr. Marchwinski. The first and foremost is that they have
+policy but they don't know how or don't want to implement those
+policies. It is very similar, in the example we heard earlier,
+when you have a policy, even if you make people read the
+policy, if you don't enforce the policy, it becomes rendered
+useless. It is like having a highway with traffic rules that
+are never enforced.
+ Mr. Keller. What about the money issue that we have heard
+so much about this hearing?
+ Mr. Marchwinski. We have never actually talked to a person
+and have been declined the business because of price. We have
+said that we will work with the institutions, fit into their
+budget cycle and allow them to pay as necessary.
+ Mr. Keller. Mr. Feeney started to cover some of this. I
+realize, as the head of this company, you probably think, and
+maybe have a good claim to saying, that your technology is the
+best out there, but give us an idea of how many people you have
+to compete with in this arena.
+ Mr. Marchwinski. In the immediate arena, there is about
+five major competitors, and when you extend out past that,
+there is probably another six or eight competitors.
+ Mr. Keller. Okay. Thank you.
+ Mr. Chairman, my time is up.
+ Mr. Berman. Thank you very much, Mr. Keller.
+ Mr. Schiff, 5 minutes.
+ Mr. Schiff. Thank you, Mr. Chairman. I wanted to ask about
+a couple issues.
+ I understand that in the response to the request for
+information on student digital piracy and efforts to undertake
+and to mitigate that piracy that some of the universities
+responded that violated student privacy concerns, others that
+the Copyright Act imposed little legal obligation on network
+operators to monitor or investigate violations of the act.
+ That may be true, of course that can be changed, and I am
+interested to get your reaction to a couple different ideas
+that have been percolating. One is, one way to go at this would
+be to narrow the safe harbor, require that best efforts or
+responsible efforts be undertaken to deal with those efforts,
+whether P2P or other, that involve the distribution of illegal
+content.
+ And you could have a narrower safe harbor by saying that
+sort of the state of the art is to have a technology that
+filters out illegal distribution, not a requirement to be the
+technology that your company produced or any other but imposing
+a requirement or narrowing the safe harbor to say if you are
+using a technology that is designed to address this problem,
+then you are in the safe harbor, and if you are not, then you
+still may be making a reasonable effort but you are not in the
+safe harbor.
+ I would like to get your feelings about a change along
+those lines.
+ And, second, because there is a real problem with
+enforcement, we don't have the resources in the Federal
+Government to investigate every violation, it has been
+suggested by some that we employ local law enforcement to be a
+force multiplier and that we empower local enforcement, local
+police to go after certain intellectual property violations and
+then keep the fines that would be assessed for the violations
+as a way of financing the enforcement.
+ And I would be interested to get your thoughts on both of
+those proposals. And I direct it to all of you.
+ Mr. Vaughn. In terms of the liability limitations, I
+believe you are referring to the DMCA section 512 limitations,
+and I think it is our understanding, and I think Cary may
+disagree with this, but that, strictly speaking, universities
+are not liable for peer-to-peer file-sharing. It is conduit
+traffic that is not hosted on their servers.
+ And that virtually every one of our institutions responds
+to notices of claimed infringement, I don't know of any
+institution that doesn't, and some of them do it, I think,
+because they believe they are legally obligated to it, all of
+them do it because it is the right thing to do. So I don't see
+a problem there.
+ Our institutions, when they get notices of claimed
+infringement, they respond and take appropriate action, and if
+there is some need to reexamine--I am troubled about the notion
+of a technology requirement to avoid narrowing the safe harbor
+for two reasons: Technology changes so fast, and I doubt if we
+will ever have a technology that everybody agrees works.
+ So maybe we would adopt a technology. I assume that this
+procedure would apply to commercial ISPs as well as
+universities, and I, frankly, don't know how they respond to
+claimed infringement notices. I suspect they operate but Cary
+may know. We do it, though, as a matter of proper policy, not
+because we think we are obliged to.
+ Mr. Schiff. One analogy, and I don't know how accurate it
+is, we have do not call lists, and there is an obligation to
+check the do not call list to make sure if you are a
+telemarketer you are not calling people who have signed up for
+that.
+ If the content producers either put their digital
+protection watermarks or I know there is a way of identifying
+content, a frame in a film or a sequence of images in a film,
+and you could draw on that body or a filter made use of that
+information to decide what was sought to be protected, that
+would, seems to me, be a pretty viable way of doing this.
+ Now, again, I am not suggesting we mandate any particular
+technology or even mandate technology, but there might be a
+presumption that if you are using these technologies, that you
+are taking, sort of, the state-of-the-art precautions.
+ Mr. Vaughn. Well, Greg Marchwinski mentioned earlier that
+there apparently now are new encryption techniques for the
+infringers that override watermarks and defeat some of those
+technologies. There are technologies that are filtering that
+are quite effective at identifying specific copyrighted
+material that those owners don't want to be distributed on
+peer-to-peer networks, but they are very expensive.
+ So this is all changing and trying to figure out how to get
+technologies that can adapt to the college environment, that
+can be affordable, is what this new group we are putting
+together is all about. But we will probably have to put
+together a new group in 2 years, because it will change that
+fast.
+ Mr. Berman. Mr. Vaughn, let me cut you off, only because I
+think we should hear a response to Mr. Schiff's question from
+the other two witnesses. Time has expired. I am curious about
+your view of Mr. Vaughn's theory of DMCA.
+ Mr. Sherman. The first point is that Mr. Marchwinski's
+technology would actually deal with encrypted files. It works
+even when the files are encrypted, which shows how far
+technology has come. And I think the other problem--I agree
+with John that most universities are very responsive to DMCA
+notices.
+ The problem is, it is a reactive system. It is only when we
+find the problem that they will do something about it, when in
+fact it is their network and they have the ability to see what
+is going on on that network, especially on the local network
+where people are using the network every day to infringe dorm
+to dorm rather than over the public Internet.
+ They have the ability to do something about it. Technology
+would enable them to do it in a relatively automated way. That
+would be a much, much better solution than putting the burden
+on copyright owners all over the world to monitor every network
+at every university to try and root out infringement.
+ Mr. Vaughn. Just to follow up on the last point about
+police enforcing the laws, again, back to my prior analogy, if
+you have laws on the books and they aren't enforced, there are
+going to be infringers, and if you are completely reactionary
+to being warned, then the laws aren't going to be as effective
+as they need to be.
+ But the best analogy is imagine a traffic intersection
+where there is a camera now monitoring for people that go
+through red lights. If you were actually caught every time you
+went through a red light, independent of the time or day, 6
+a.m. on a Sunday morning you are going somewhere. ``Oh, there
+is no traffic around, I can go through it.'' Well, if those
+laws are being enforced, the behavior will change.
+ Mr. Berman. The time of the gentleman is expired.
+ We, of course, don't accept that there is a harm-free
+crossing of a red light in this area, but your point,
+otherwise, is good.
+ I yield myself a few minutes just basically to ask one
+rambling, convoluted question.
+ There has been reference to the university task force on
+requirements for filtering networks.
+ Mr. Vaughn, this really is to you and any response from Mr.
+Sherman as well, because you are both on the Joint Committee on
+Accreditation.
+ You had that in November, it hasn't met, it hasn't set up a
+process yet, but you have talked, and you have mentioned here
+you are going to come up in the spring with a series of
+recommendations.
+ I hear that but then I hear you talking about, well, you
+can never get everyone to agree on a technology. I thought the
+purpose of this was to sort of agree on a technology, a series
+of technologies, a menu of technologies that were effective,
+that were collaboratively agreed to by the universities and by
+the copyright-owning institutions and their associations.
+ And I would like you to respond, do you expect that to
+happen, and if that happens, what will you do to implement it?
+I mean, I see some very nice letters from earlier decisions by
+the joint committee that say, ``We have come to a nice
+agreement here. Take a look at this and see if you''--in other
+words, it didn't have a hammer, not that anyone should be
+called a hammer, but it didn't have a hammer.
+ And is there going to be some effort by this task force to
+implement these recommendations and to push the universities on
+this in some way that would give us confidence that this
+process you have created will work through?
+ Mr. Vaughn. I think that the way this is going to work is
+that we are going to get university experts that know these
+networks, know how they work, know our policies and just sit
+down with commercial technology vendors.
+ We will work with RIAA and MPAA and other entertainment and
+expert folks so that we all three parties working on this
+problem. Because one of the things we have discovered is some
+of the technologies that have been designed for other sectors
+are sort of force fed and don't fit well into ours.
+ So what we want to do is explain to commercial vendors what
+our needs are and try to give them the information they can use
+to design more effective products. If we can create
+technologies that accomplish this, we will make every effort--
+we can't command institutions to use these, but if there are
+affordable, effective technologies that fit our policies, and
+our timeline is about a 120-day process for this group, you can
+be assured we will do everything to promote that and to
+encourage its implementation.
+ What I meant about never agreeing, there will be a
+technology arms race, so let's say that in June----
+ Mr. Berman. Oh, I don't think----
+ Mr. Vaughn [continuing]. Then 2 years from now we will need
+to do it again.
+ Mr. Berman. Yes, but that is not a reason not to do it now.
+ Mr. Vaughn. Absolutely. No, I agree.
+ Mr. Berman. Mr. Sherman, do you want to add anything on
+this?
+ Mr. Sherman. I think John has actually described the
+mandate to the Technology Task Force. We have found that people
+were developing products without input from the university CIOs
+about what their needs are, so we need for them to be
+communicating.
+ But more than anything else, we need universities to be
+basically telling the private sector that they would welcome
+the use of effective technologies, so go out and make them,
+invest in them, have more companies get into this field.
+ Because there won't be a supply unless there is a demand,
+and we need the universities to basically say, ``We think
+technology solutions can be a very helpful element of
+addressing this problem and we would like to see those
+technologies and work with you to help implement them.''
+ Mr. Berman. Very good. If there is nothing else, I----
+ Mr. Sherman of California. Mr. Chairman, you asked earlier
+whether Mr. Sherman had anything to add.
+ Mr. Berman. Yes. I will use first names from now on.
+ The gentleman from California has not had a chance to
+question yet, and he is recognized for 5 minutes.
+ Mr. Sherman of California. Why, thank you, Mr. Chairman.
+ Both the other Mr. Sherman and Mr. Davis have both used the
+phrase, ``teachable moment,'' and I would like to ask what role
+education can play in ending piracy, both proactively and
+reactively. Students already know, or probably know, that it is
+not legal to download a whole movie that is in the theaters,
+but they are doing it anyway. And it would seem that that could
+be counteracted by ethics education.
+ Of course, you might also need technical legal education on
+what copyright law is, because students may not even know--I
+think Mr. Davis pointed this out--that it is illegal to
+download last week's episode of The Office over a peer-to-peer
+network, because it seems analogous to just using a VCR or
+TiVo.
+ Both educational institutions and entertainment companies
+are pretty much the two leading educational institutions of
+this society. Both have an opportunity to educate those who
+would violate copyright law.
+ Are there plans by the AAU or by the entertainment industry
+to educate students, either on what they are allowed to do
+legally and what is illegal or on the ethical importance of
+following the law?
+ Mr. Vaughn. There are several reasons that I mentioned in
+my written testimony for universities caring about attacking
+illegal peer-to-peer file-sharing. Probably, I think, the most
+fundamental one is our central obligation, as part of the
+overall education of these students, to produce students that
+are good citizens that understand legal, ethical, moral
+behavior. When we fail to do that, we have failed at part of
+our mission.
+ So trying to attack this in that teachable moment that Jim
+Davis mentioned is one of the most fundamental parts of this
+and, ultimately, one of the most effective.
+ On a 50,000-student campus, that may be difficult to
+implement, but UCLA is a pretty big campus, and they seem to be
+doing it pretty effectively. We need to marry that with some
+more immediate techniques, like enforcement, like technology,
+but I think trying to incorporate that is a very important part
+of this whole effort.
+ Some institutions do it better than others, and when you
+have a busy institution with everybody doing a million
+different things, when you can identify a set of practices for
+teaching students, freshman when they come in, violators when
+they are caught, in effective ways and you spread that across
+the campuses, you can really help disseminate effective
+practices effectively, and that is part of what we hope to do.
+ Mr. Sherman of California. I hope that you would educate
+students not just that, ``it is illegal so it is wrong.'' I
+mean, the reason you don't go through that red light is because
+if 100 people do it, even at 6 in the morning, we are going to
+see one of them in an accident.
+ What I haven't seen adequately explained to students is not
+just how the entertainment industry would be hurt if everything
+gets copies and pirated, but how our culture would be hurt. We
+all like seeing the movies, and if there is no way to pay for
+them, they may still make them, but then they will design them
+to get a couple hundred million bucks' worth of product
+placement, and you can just imagine how boring and contrived
+the plots will be if you have to write the movie not to garner
+the biggest box office, because there is no box office, but to
+garner the biggest product placement fees. And I would hope
+then that your education would be both in terms of people who
+make content deserve to be paid but what happens when they are
+not paid.
+ But I would like to turn to Cary and ask, what is the
+entertainment industry--and I realize you don't speak for the
+entire industry--doing to educate the public as to what
+copyright law requires, what it allows, what it doesn't, and
+why it is unethical, illegal and ultimately harmful to violate
+that law?
+ Mr. Sherman. We have launched a series of educational
+initiatives, starting with grades 3 through 6, 6 through 8, 9
+through 12 and universities, and they all have different
+educational messages, because different messages resonate with
+different ages. When you are young, whether it is right or
+wrong or legal or illegal makes a big difference. When you are
+in college, it makes very little difference. So you need a very
+different message.
+ And, in fact, that is why the lawsuits have been so
+effective, because college students are much more focused on
+how something will impact them, rather than how it will impact
+somebody else.
+ But I think that we are trying to come up with messages
+that will make a difference. The orientation video that we
+created for college students was intended to tell them what
+they have got at stake in the issue. The fact that there may be
+fewer movies or less music has not resonated as a message.
+ But I think this is also part of a larger issue. It is not
+just copyright. It is that I don't see any program anywhere,
+whether we are talking about high schools or universities,
+where how you live in a cyberworld is taught. It is a totally
+new ethical situation, and there is nobody taking
+responsibility for how we are going to do that. We need that
+curriculum.
+ Mr. Sherman of California. Thank you.
+ Mr. Berman. The time of the gentleman has expired.
+ I thank all my colleagues for their great participation.
+ It is the Chairman's intent in half a year or so, assuming
+the Congress is still in session, and I have very little doubt
+that we will be, to find out how many of the association
+members have adopted the recommendations of the committees that
+you have all put together to develop the technological
+recommendations to implement a more effective policing of these
+networks.
+ And I thank you all very much for participating and adjourn
+the hearing.
+ [Whereupon, at 4:50 p.m., the Subcommittee was adjourned.]
+ A P P E N D I X
+
+ ----------
+
+
+ Material Submitted for the Hearing Record
+
+Prepared Statement of the Honorable Stephen I. Cohen, a Representative
+ in Congress from the State of Tennessee, and Member, Subcommittee on
+ Courts, the Internet, and Intellectual Property
+ The piracy of copyrighted works is of serious concern to me. Piracy
+of copyrighted works costs the U.S. economy billions of dollars every
+year and adversely affects creative industries that are responsible for
+providing millions of jobs for Americans. Digital piracy by students
+using university networks is a large part of this problem and has been
+for quite some time, as most of our witnesses appear to acknowledge in
+their written testimony. I am eager to discuss what the current status
+of this problem is, what steps have been taken by universities to
+combat student piracy since the last time the Subcommittee visited this
+issue, and what additional steps they intend to take in the future.
+
+
+
+ Prepared Statement of the Honorable Sheila Jackson Lee, a
+ Representative in Congress from the State of Texas, and Member,
+ Subcommittee on Courts, the Internet, and Intellectual Property
+ Thank you, Mr. Chairman for holding this hearing today. Let me also
+thank the Ranking Member. I would also like to welcome and thank our
+distinguished panel of witnesses who have joined us here today to
+discuss piracy on university networks:
+
+ Mr. Cary H. Sherman, (RIAA) Recording Industry
+ Association of America, Washington, D.C.;
+
+ Mr. John C. Vaughn, Executive Vice President,
+ Association of American Universities, Washington, D.C.;
+
+ Mr. Gregory J. Marchwinski, President and Chief
+ Executive Officer, Red Lambda, Longwood, Florida; and
+
+ Mr. Jim Davis, Associate Vice Chancellor for
+ Information Technology, (UCLA), University of California, Los
+ Angeles, CA.
+
+ The purpose of today's hearing is to inform and update the Members
+of this Subcommittee on the status of ongoing efforts, which have been
+undertaken by copyright owners, universities, and higher education
+associations to educate students and prevent the illegal distribution
+of copyrighted content over university networks.
+ the history of illegal downloading of copyrighted music
+ Illegal downloading has been well documented and was brought to the
+forefront of the intellectual property arena when the entertainment
+industry undertook extensive efforts to prevent Napster from providing
+a means for its users to illegally download and disseminate music. On
+the Napster system, users could not only play the music back after
+downloading it but also record it to a compact disk by using a CD
+writer.
+ Napster also allowed music to be played from their server and
+maintained user forums. This access to free music quickly became
+popular on college campuses. Some schools have banned the application
+because of its high bandwidth demands.
+ Mr. Chairman, in 1999, Napster began facing challenges from the
+Recording Industry Association of America (RIAA), which filed a lawsuit
+claiming copyright infringement as well as from some recording artists
+such as the rock band Metallica. In 2000, colleges and universities
+began banning Napster because overuse was overwhelming their computers
+systems. On July 26, 2000, the U.S. District Judge Marilyn Hall Patel
+issued a preliminary injunction to Napster ordering them to shut down
+their website.
+ Although an appeals court granted Napster's request for to stay its
+order, three days later, on February 15, 2001, the United States Court
+of Appeals for Ninth Circuit affirmed the order holding Napster liable
+for all illegal downloads made by users of their software. The court
+ordered the company to block trading of copyrighted files. Napster, the
+court said, can be held liable damages, which could exceed hundreds of
+millions of dollars.
+ After offering a $1 billion settlement to the industry, and shortly
+thereafter being ordered by Judge Patel to prevent users from trading
+unauthorized files within 3 business days of receiving notice from the
+copyright owner, Napster filed for Chapter 11 bankruptcy in June of
+2002.
+ On July 25, 2002, nineteen members of Congress signed a bipartisan
+letter to Attorney General John Ashcroft and the U.S. Department of
+Justice to prosecute ``peer-to-peer'' networks and the users who swap
+copyrightable files without permission and to devote more resources to
+police the downloading of online copyrighted material. In August, 2002,
+the RIAA publicized a survey by Peter D. Hart Research, which found
+that--by a more than a two-to-one margin--music consumers who say they
+download music for free off the Internet also say they purchase less
+music from retailers. On September 3, 2002--Napster ceased operations
+after Judge Peter J. Walsh of the Federal Bankruptcy Court in Delaware
+blocked the sale of the company.
+ Mr. Chairman, though Napster no longer exists, it has given rise to
+other Web-based applications for downloading MP3 files, such as
+Gnutella, Napigator, and Wrapster. In addition to Napster, Macintosh
+gurus can download Macster and open source adherents can use GNapster.
+ On September 26, 2002, an unprecedented alliance of musicians,
+songwriters, music organizations, and record companies--dubbed the
+MUSIC Coalition--launches an aggressive education campaign aimed at
+combating the illegal distribution of copyrighted music over the
+Internet. On October 10, 2002, in a letter to more than 2,300 college
+and university presidents, members of the creative content industries--
+including the RIAA, the Motion Picture Association of America, the
+Songwriters Guild of America and the National Music Publishers
+Association--explained how serious the problem of peer-to-peer piracy
+is on America's campuses and what school officials can do to help solve
+it.
+ In December 2002, the entertainment industry and higher education
+community joined to create the Joint Committee of the Higher Education
+and Entertainment Communities to address the increasing use of
+university servers for copyright infringement on peer-to-peer networks.
+ Mr. Chairman, this Subcommittee today will again consider the
+testimony of witnesses regarding the subject of student piracy of
+copyrighted content, as it did in the 108th and 109th Congress. I look
+forward to the testimony of our witnesses and hope that today we will
+learn that there has been a concerted effort by all parties involved to
+reach common ground and a shared understanding of the importance and
+value of protecting copyrighted materials by preventing its illegal
+distribution.
+ Thank you, Mr. Chairman. I yield back the remainder of my time.
+
+ ATTACHMENT
+[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
+
+
+ Prepared Statement of the Honorable Lamar Smith, a Representative in
+ Congress from the State of Texas, Ranking Member, Committee on the
+ Judiciary, and Member, Subcommittee on Courts, the Internet, and
+ Intellectual Property
+ Mr. Chairman, I thank you and the ranking member for selecting
+student digital piracy on university networks as the topic of the first
+copyright hearing this Congress.
+ This is not a new subject. While I was the subcommittee chairman
+and you were the ranking member, we held several hearings on this
+matter.
+ At the initial hearing, I noted that ``[t]his hearing will focus on
+the extent of peer-to-peer piracy on university campuses and what
+measures content owners and universities are taking to address the
+problem.''
+ You noted then that, ``P2P file trafficking causes great harm to
+copyright owners,'' and that ``colleges play a prominent role in
+contributing to P2P piracy.''
+ The extent of that harm has increased exponentially over the
+intervening years.
+ This Subcommittee and Congress have been patient in working with
+university administrators and representatives from education
+associations to implement voluntary solutions to the student digital
+piracy problem.
+ Unfortunately, the testimony before the Subcommittee today and
+published reports indicate that some in the university community have
+sought to minimize the importance of addressing this issue in an
+effective manner.
+ In fact, they have gone so far as to publicly discourage college
+and university officials from providing responses to a voluntary survey
+that the Government Accountability Office (GAO) prepared at your and my
+request in the last Congress.
+ Although the problem of peer-to-peer piracy is not confined solely
+to colleges and universities, the fact is that 44% of the domestic
+piracy losses suffered by the U.S. motion picture industry--more than
+half a billion dollars each year--are directly related to student
+digital piracy by college students.
+ Many university administrators have accepted their responsibility
+to do more to curb the theft of intellectual property via university
+networks, which--after all--are geographically limited and have access
+controlled by university technology officers.
+ But it is clear other education officials continue to resist the
+adoption of new technologies and enforcement policies that would likely
+prove much more effective at restricting or eliminating such theft.
+ I commend those university officials who have made an effort to
+fulfill their obligations.
+ To those who have not, I will simply note the Members of this
+subcommittee have an affirmative responsibility under Article I,
+Section 8 of the Constitution, to ``promote the progress of science and
+useful arts by securing for limited times to authors and inventors the
+exclusive right to their respective writings and discoveries.''
+ At the conclusion of this fourth hearing on the subject of student
+digital piracy, this Subcommittee will have built an extensive record
+that could be used to justify the drafting of additional legislation to
+remedy the problem.
+ In closing, I want to thank the new Chairman and Ranking Member of
+the Subcommittee for their recognition of the importance of this issue.
+ Mr. Chairman, I yield back the balance of my time.
+ GAO Study of Colleges submitted by the Honorable Howard L. Berman, a
+Representative in Congress from the State of California, and Chairman,
+ Subcommittee on Courts, the Internet, and Intellectual Property
+
+[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
+
+
+ Dear Colleague Letter, Curbing Student Digital Piracy on College
+ Computer Networks
+[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
+
+
+Top schools receiving the highest volume of DMCA copyright infringement
+notices from the RIAA beginning in September 2006 through mid-February
+ 2007
+[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
+
+ Additional material submitted by John C. Vaughn, Executive Vice
+ President, Association of American Universities, Washington, DC
+[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
+
+
+ Letter from Dan Glickman, Chairman and Chief Executive Officer,
+ Motion Picture Association of America, Washington, DC
+[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
+
+
+
+