IICA will force P2P nets abroad, let's spare U.S. tech innovation in that process

The P2P network eDonkey is a newcomer compared to old hat Kazaa. This recent article about IICA and eDonkey explains why eDonkey may be scaring the copyright industry even more than Kazaa and the others.

EDonkey's speed shows in its technology. It downloads bits of files simultaneously, and then seamlessly puts them into one file after they reach your computer. The name eDonkey is meant to spotlight its specialty in big files. The donkey is carrying a big load for you.

This C|Net article discusses the fact that Kazaa use is slowing while use of eDonkey and BitTorrent, new rival P2P networks, is growing.

Noteworthy is the fact that eDonkey is perhaps the only P2P network incorporated in the United States (New York to be exact).

Unlike competitors, eDonkey is incorporated in New York and pays taxes here. That should account for something, Yagan [CEO] says. (Kazaa is incorporated on the small island of Vanuatu; Grokster is headquartered in Nevis, West Indies; and Earthstation 5 is run from the Jenin refugee camp in Palestine.)

Concerning the passage of the Induce Act, eDonkey's CEO says: "We'd have to figure out whether we need to close down (or) move abroad and keep doing what we're doing."

Like with spam or spyware bills, even if IICA passes, companies intent on using such a business model will find a place to do it. They will incorporate in a country that will protect them and continue to run their P2P networks.

Personally, although P2P is a great innovation I feel no sympathy for the P2P networks because they are involved in massive copyright theft and are doing nothing to stop the infringement. The point I want to make is this: let's not create an overbroad new copyright bill like IICA that will stifle innovation of mixed use technology in order to "kill off" the P2P networks because those networks will just go elsewhere anyway. Let's write a bill that very narrowly targets P2P networks to avoid 'collateral damage' in the tech sector.

The buzz at the IICA hearing was to create a bill that will get "bad actors." Let's do that, but also let's realize the probable ultimate result of IICA -- the creation of data havens and copyright infringement havens elsewhere (Russia, China, North Korea, small island states, Sealand, etc). The Induce Act should be rewritten with this is mind, otherwise, we may end up with a bill that not only stifles innovation, but does not even kill off the P2P nets. It seems that the best we can do with IICA is slow down the use of P2P, let's spare technological innovation in the United States in the process.

Please comment on what you think of the possibility for the creation of foreign 'P2P havens.'