Internet

Internet

In the second half of '90s, MP3 files began to spread on the Internet. The popularity of MP3s began to rise rapidly with the advent of Nullsoft's audio player Winamp, released in 1997. In 1998, the first portable solid state digital audio player MPMan, developed by SaeHan Information Systems which is headquartered in Seoul, South Korea, was released and the Rio PMP300 was sold afterwards in 1998, despite legal suppression efforts by the RIAA.^[39]
In November 1997, the website mp3.com was offering thousands of MP3s created by independent artists for free.^[39] The small size of MP3 files enabled widespread peer-to-peer file sharing of music ripped from CDs, which would have previously been nearly impossible. The first large peer-to-peer filesharing network, Napster, was launched in 1999.
The ease of creating and sharing MP3s resulted in widespread copyright infringement. Major record companies argued that this free sharing of music reduced sales, and called it "music piracy". They reacted by pursuing lawsuits against Napster (which was eventually shut down and later sold) and against individual users who engaged in file sharing.^[40]
Despite the popularity of the MP3 format, online music retailers often use other proprietary formats that are encrypted or obfuscated in order to make it difficult to use purchased music files in ways not specifically authorized by the record companies. Attempting to control the use of files in this way is known as Digital Rights Management. Record companies argue that this is necessary to prevent the files from being made available on peer-to-peer file sharing networks. This has other side effects, though, such as preventing users from playing back their purchased music on different types of devices. However, the audio content of these files can usually be converted into an unencrypted format. For instance, users are often allowed to burn files to audio CD, which requires conversion to an unencrypted audio format.
Unauthorized MP3 file sharing continues on next-generation peer-to-peer networks. Some authorized services, such as Beatport, Bleep, Juno Records, eMusic, Zune Marketplace, Walmart.com, Rhapsody, the recording industry approved re-incarnation of Napster, and Amazon.com sell unrestricted music in the MP3 format