October 20, 2005
A U.S. District Court judge has halted the deceptive ads of a Web operation that claimed that membership in MP3DownloadCity.com would allow users of peer-to-peer (P2P) file-sharing programs to transfer copyrighted materials without violating the law.
The FTC will seek a permanent bar on the deceptive claims, redress for consumers, and a requirement that the defendant notify consumers who signed up for membership that the programs he promotes to share copyrighted files may subject them to civil or criminal liability.
According to the FTC, the defendant markets and sells a tutorial and referral service that promotes the use of P2P file-sharing software programs to download digital music, movies, and computer games.
Unlike a licensed subscription service, the defendants service does not provide its paying customers with a license to download and share copyrighted music, movies, or games. Instead, for $24.95, the defendant instructs consumers on the use of free P2P file-sharing software provided by others, such as Kazaa.
According to the FTCs complaint, consumers are lured to become members by deceptive claims that subscribing to the defendants service makes P2P file sharing legal. Internet ads for the service make claims such as:
• AND BEST OF ALL PEOPLE ARE NOT GETTING SUED FOR USING OUR SOFTWARE. YES! IT IS 100% LEGAL;
• Why Are We The #1 Free MP3 Music Download Site? . . .
• Download and Watch DVDs and Movies Still in Theaters; and
• Rest assured that File-Sharing is 100% legal.
But, according to the FTC complaint, the defendants customers who use P2P file-sharing programs to download copyrighted material, or who make it available to others, without the copyright owners permission, are engaged in copyright infringement and could face civil and criminal liability.
The FTC charged that the defendant violated the FTC Act by falsely claiming that membership in its service made P2P file sharing legal.
The FTC has asked the court to order a permanent halt to the deceptive claims, order the defendant to pay consumer redress or to give up his ill-gotten gains, and notify customers that they could face civil and criminal liability
The defendant in the case is Cashier Myricks Jr., doing business as MP3downloadcity.com, based in Los Angeles.
The FTC has published a consumer alert, P2P File Sharing: Evaluating the Risks, that is available at: www.ftc.gov/bcp/conline/pubs/alerts/sharealrt.htm.
