Music on the Internet and the intellectual property protection problem

Recent advances in audio compression technology coupled with trends toward higher network bandwidth, lower memory costs and lower storage costs indicate that the obstacles to music distribution on the Internet will soon be overcome. Because it provides benefits to consumers and to music content owners alike, networked music distribution may become one of the first compelling Internet consumer services. At the same time these technological advances create opportunities for pirates. We believe that the music industry must prepare for network music distribution or face widespread theft of its music. In this paper we first review the technological advances that are driving a change in the industry's business model. We then discuss the opportunities that these advances allow. Finally we focus on the dangers to content owners and discuss various ways to protect music content.