On Monday, Sharman Networks released Kazaa 3.0. The popular file sharing program has been revised to add an array of new features, the most notable being the inclusion of Skype. While the rumor of Skype's addition to Kazaa is not new (Corante included an entry some time ago). However, most of the articles discussing the predicted change have focused more on the FCC and how it will handle Voice over IP (VoIP) technologies. America's NetWork (a news site for ISPs) provided an in depth discussion of Skype, its technology and the potential impact on telephone carriers (note: portions are somewhat technical).
What's the big deal? "The world will change now inevitably." At least, that's the case if you believe FCC Chairman Michael Powell.
Skype allows users to place free "calls" to each other when using their software. The Skype technology is like p2p for voice in the way that it connects users and determines how to distribute traffic. Skype offers discounted rates that allow calls to be placed from a computer to a traditional land line telephone (around 2¢ per minute in the US and quite cheap elsewhere) as well. Skype has been downloaded some 23 million times (nothing compared to Kazaa's 300 million). And the quality is pretty good. Various hardware components will soon offer the ability to have a "phone" that operates strictly over VoIP, allowing even home users to skip the phone company (a lot of companies switched to VoIP some time ago). Vonage, for example, offers competitive competitive packages and the ability to have a regular phone number receive service through existing broadband service, though not based on p2p technology like Skype.
Adding Skype is Kazaa will certainly increase the number of Skype users, thus threatening the phone companies just a little more. That's what has the FCC boys wondering what'll happen. But it does something else.
It adds a huge non-infringing use to Kazaa, particularly if the "phone" functions gain in popularity. Skype is poised to be one of the most popular consumer-oriented telephone replacements. It offers free "phone" calls to Skype [read as Kazaa 3.0] users anywhere in the world. And it offers cheap calls should one need to ring a real phone. It also includes instant messaging features.
Which makes Kazaa sound a little bit more like AOL Instant Messenger (AIM), an file sharing tool discussed in class on more than one occasion. We looked at AIM as an example of a product with substantial non-infringing uses that also allowed for the exchange of copyrighted materials. And AOL is able to profit from advertising on the AIM network without blatantly profiting from copyright infringement. Skype has the potential to shift Kazaa into this category.
While the agreement between Sharman and Skype is not clear, marketing and profit sharing potential for both companies is likely. Kazaa may receive a cut for paid calls originating from the Skype-embedded-Kazaa. That source of revenue could outpace advertising on the p2p service. Should that happen, Sharman can claim it has no need to induce infringement: its commercial viability lies elsewhere.
Sharman continues to argue that having Kazaa is legal (who wouldn't believe a link on their homepage... there's another on that promises no Spyware). To lend credibility to the p2p side of the business, the site includes a guide to sharing your own works via the p2p network. In addition, some artists have licensed the distribution of their works through Kazaa, according to TechTree.
Artists such as Steve Earle, Richard Thomson, Little Feat, Russell Simmons, Public Enemy, The Black Keys, Widespread Panic, Ten Mile Tide and others have embraced the P2P platform and used Kazaa to promote and distribute their licensed, digital files to Kazaa users.
Kazaa 3.0 has another feather for its non-infringing hat. It includes a free trial of TypePad. Yes, the very blog service upon which this very non-infringing blog is located. Again, details aren't clear, but the trial appears to be part of an affiliate program... Kazaa likely gets a cut when a Kazaa member decides to stick with TypePad after the free trial: another penny in the "we don't make money on p2p" piggy bank.
I hate to sound cynical... there certainly can be awesome potential for an integrated platform to share ideas. My blog linked to my instant messaging account linked to my phone linked to my shared files. Sounds like a fantastic collaborative platform upon which I can develop my academic pursuits, seek feedback on my law review comment, or host a conference on copyright. The potential is huge, and bringing these features together under one application would be a terrific tool.
But when you look at a wolf in sheep's clothing, be careful not trim the wool too close the the skin. The new Kazaa also offers "improved search capabilities, enabling users to 'search more' than ever before, with up to 3,000 more results per search."
I don't think that's referring to searches in the Skype Phone book to find lost high school classmates, do you?
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