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That all changed w
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However, this made the big record labels pretty upset, and eventually a lawsuit against Napster was filed. The lawsuit from the record industry claimed that Napster was allowing for people to steal songs that belonged to the artists and record labels, and they wanted Napster shut down immediately. The world watched as the 9th Circuit Court ordered Napster to close its doors and labels the file sharing of copyrighted files illegal.
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Even though the record labels won the battle over Napster, their profits are still falling and P2P file sharing is still widely used. New programs such as Limewire, Kazaa and Vuze have all succeeded each other to prove to the world that people and programmers don't care too much for what the 9th Circuit Court and the record label industry says.
My take on the matter is that in order to steal something, you must take something owned by another without permission. The Merriam-Webster dictionary defines stealing as: to take the property of another wrongfully and especially as a habitual or regular practice.
Since P2P file sharing is the process of copy bits of information and giving them to another person; no one has had anything stolen. The first person to share the song presumably purchased it legally and then gave a copy of it to someone else. Nothing was stolen, no one is short a product - actually a new product has been created.
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The information above was taken from Download - The True Story Of The Internet "People Power," and also from personal experience.