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  Tech Group Aims at Profit-Friendly File-Sharing
Time: 09:54 EST/14:54 GMT | News Source: Reuters | Posted By: Jonathan Tigner

The world's largest software and music companies, together with a broad alliance of companies, on Wednesday said they would work together in a bid to transform Internet file sharing from a haven for piracy into a potential profit center.

Microsoft Corp. (MSFT.O: Quote, Profile, Research) and Universal Music, a unit of Vivendi Universal (V.N: Quote, Profile, Research) are members of the Content Reference Forum, formed in March to develop a universal way to distribute digital content.

The group on Wednesday issued an initial set of technology specifications in a bid to create a system in which users would share customized Internet links, called "content references," instead of swapping song or film files directly.

Michael Miron, president of the Content Reference Forum, said the links could work on existing file-sharing networks, which are now frequently used for illegal copying.

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#1 By 20 (24.173.210.58) at 12/12/2003 1:22:29 PM
Hint: People don't use file sharing because they want to pay the RIAA more money

Profit-friendly == unused

#2 By 2459 (24.175.137.164) at 12/12/2003 7:20:08 PM
The way this sounds, the user may get also compensation for redistributing the files. If so, therein lies the key to widespread usability (plus some people would rather follow the law and not risk exposure to litigation). That and the service's ability to give you the file in your preferred format.

"The vision of the forum is for consumers to enjoy as well as redistribute content with commercial terms beneficial to all members of the value chain," he said.

Since consumers would be distributors (or at least, contributors to the directory listing), this potentially makes them part of the value chain.

#3 By 2459 (24.175.137.164) at 12/12/2003 11:02:32 PM
I'm guessing that the links would go to commercial servers that hold the content in various formats. These servers would be controlled by the content providers. Users would just provide a dynamic listing of available content. Though, maybe, the service could use user bandwidth instead of, or in addition to its own, for downloads, but push the transaction through a DRM license server first so a downloader could first purchase the song, or be licensed to preview the song on a trial basis and have the option of purchasing it if they like it.

It'd be kinda like Napster's shared libraries feature, but able to provide purchasable content in the user's format of choice, and (if using the user's bandwidth, etc.) provide compensation for sharers. The model could be a mix of centralized/decentralized for downloads, or one or the other. Users would come to the service(s) for similar reasons as they go to Napster, iTunes, et al, now.

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