Brett Aresco

As a consulting group for Apple, Inc., our task in this project will be to evaluate the pros and cons of using the Bit Torrent system as an appropriate way to supplement legal downloading of movie files through the iTunes store. In this evaluation, legal matters are of the utmost importance, especially considering the histories of both the iTunes Store and Bit Torrent, Inc. p2p technology. From Apple?s standpoint, they would be adopting a technology that has come under fire for its questionable legality. Speaking strictly in terms of efficiency, the Bit Torrent client is a great alternative to normal, central source downloading off of which the current iTunes Store model operates. Downloads using the Bit Torrent client, because of its superior, bit by bit uploading and downloading of large files such as HD movies from many different servers, makes it a client that can more easily handle demanding files that would then generate more interest in the Apple Store. The only issues with this incorporation come from the legality of the Bit Torrent client.

There is a plethora of Bit Torrent clients on the Internet right now. Many have come under fire from the Motion Picture Association of America and the Recording Industry Association of America due to massive amounts of file sharing being illegally perpetrated on these sites. Examples of popular Bit Torrent sites that have been shut down are such as suprnova.org and LokiTorrent. In response to legal pressure, Bit Torrent Inc. recently signed a deal with the movie industry to reduce unlicensed copies of movies on its main site, bittorrent.com. This has reduced some of the liability on the main purveyor of the Bit Torrent system. If Apple were to adopt Bit Torrent?s system, allowing people to purchase movies and download them using Bit Torrent technology, the legal issues would be lessened for Bit Torrent but increased for Apple. Apple, Inc. would assume a large liability if it were to acquire Bit Torrent, due to the possibility of free riders exploiting the system through low upload times and ?optimistic unchoking.? However, adopting Bit Torrent technology would come with more ability for the Apple Store, which, in turn, may generate more customers. Bit Torrent technology, due to its ability to harbor large files, may be one of Apple?s only hopes if it were to want to put things such as HD movies and other large files on its site. Without incorporating Bit Torrent, Apple could face declining customers and a significant challenge from Bit Torrent for people who want to download. These legal issues and potential opportunities for Apple must be weighed against each other and looked at under a legal lens before Apple is able to make an informed decision about whether to
employ Bit Torrent technology.

LokiTorrent case:
http://news.com.com/LokiTorrent+fights+MPAA+legal+attack/2100-1025_3-5508073.html
http://boingboing.net/2005/02/10/mpaa_shuts_down_loki.html (including other
links on the page like the MPAA press release)
http://www.afterdawn.com/news/archive/6141.cfm
Suprnova.org case:
http://www.slyck.com/news.php?story=1177
http://www.internetdj.com/article.php?storyid=514
http://torrentfreak.com/suprnovaorg-two-years-since-the-shutdown/