Fact Sheets

Unauthorised File- Sharing in You Business

What’s copyright?

When someone creates a piece of music (or a piece of text, a graphic, a photo, a film or anything else that is protected under copyright laws), a whole system of legal rights and obligations comes into play. These rights and obligations outline what someone can and can't do with the material.

Who owns the copyright in a piece of music?

There is generally more than one owner of copyright in any given musical track. The composer who wrote the music owns copyright in the musical works. The lyricist who wrote the lyrics owns copyright in the literary works. The artist who performed the music owns copyright in a sound recording of their live performance. Finally, the maker of the recording (typically a record company) owns copyright in the sound recording.

What rights do the copyright owners have?

The copyright owners have a number of exclusive rights, including the right to:  

• Make copies of the music;
• Perform music in public; and
• Communicate the music to the public, including over the internet.

What are the risks to my business?

Copyrighted music should not be copied on your business’ computer systems or made available via the internet without permission from the relevant rights owners. Unauthorised websites and file sharing networks are notorious sources of:

1. Viruses that can crash individual computers and spread through your network; and
2. Spyware that reports on computer usage and delivers advertising or unsolicited files.

In addition, the use of file-sharing networks in a business can result in:

1. Firewall compromise as file sharing software typically demands an open port between the user’s computer and the internet, severely undermining network security and corporate and individual privacy;
2. Security and privacy concerns as corporate and individual information is advertently shared and whole hard drives are unknowingly made accessible to file-sharers. 
3. Resource drain by using up gigabytes of servers and hard drives, plus precious and expensive internet bandwidth; and
4. Productivity drain by impacting on employees’ efficiency and work time.

Unauthorised file sharing and communication of copyrighted music is also unlawful as it authorises others to engage in these activities.  Penalties range from injunctions, full damages and delivery up of infringing material through to fines of up to $60,500 for individuals and up to 5 years imprisonment for each offence.  For corporations the fines are up to five times greater and directors of businesses can also be held liable. 

Do you have a problem?

One or more of the following may indicate that your business is at risk of the problems posed by copyright theft: 

You don’t know what programmes or files are on your computers and networks. 

You should take an inventory of music on your networks and computers and check servers and individual PCs for file-sharing software or large caches of copyright material that are unrelated to your business.

You don’t have an internet firewall or have unauthorised traffic on your internet connection.

To stop intruders and unauthorised outbound activity your business should have a firewall.  Inbound and outbound rules on internet equipment should be set to block ports and protocols that are commonly misused.

Your internet and network connections are slow.

Poor network response times may indicate that you have internal “bandwidth hogs”.  Unwanted traffic from file-sharing services or the use of such services by employees exposes your network to viruses or spyware. 

You have regular problems with computer viruses.

Viruses may be contracted on sites and services that offer illegal music.

What can you do to safeguard your business against copyright theft?

• Set a company policy that clearly explains to users, managers and IT personnel that the unauthorised copying and distribution of someone else’s music is copyright theft which your business does not support. 
• Take copyright inventories to audit certain types of copyright material, particularly software.  Music files are generally 3-5 megabytes in size, stored in .mp3, .wma or .wav format and stored in /my music or shared directories.
• Delete copies of unauthorised music from servers and all devices.
• Control file-sharing by banning unauthorised file sharing software and using the Digital File Check program (available at http://203.147.192.212/resources/digital-file-check-kit/) to find and remove it.
• Set firewall rules that screen out infringing files and illicit services, for example through blocking particular internet addresses, ports or protocols on which file-sharing often occurs.
• Control wireless access by making sure that wireless networks are encrypted and secure.
• Watch traffic levels for users that are hogging bandwidth.
• Maintain up-to-date anti-virus and spyware software to screen rogue files that contain viruses, spyware or other damaging materials.
• Designate a compliance officer responsible for protecting your business against copyright theft.

Need more information?