P2P NETWORKS Legal Risks

Who’s On First Identity crisis Each computer can be client Each computer can be server “Servent”

P2P Capabilities Instant messaging Image transfers during sessions Voice /Video Chat Game requests File transfers File Sharing Ability to Change Ports Application sharing Whiteboard Remote assistance Webcam Message Logging

P2P Vendors AIM MSN Yahoo KaZaA Morpheus Trillain Grokster Napster Gnutella eDonkey WinMX

Plethora of P2P Risks P2P software vulnerabilities –May lead to hacker exploits Infected Files –Viruses –Trojan Horses –Other malware

Plethora of P2P Risks (cont’d) Misconfigured File Sharing –May expose more than intended Unencrypted Communications –Unauthorized disclosure Social Engineering –Give up sensitive information

Plethora of P2P Risks (cont’d) File transfers reveal IP addresses –File or image transfer –Voice chat –Remote assistance sessions –Application Sharing Identity Theft –Clear text –Hijack sessions –Impersonate legitimate use

Plethora of P2P Risks (cont’d) Message logging –Session recorded to file –Fertile hunting ground Social engineering Sensitive data

Plethora of P2P Risks (cont’d) Stealth activity –Ability to change TCP/IP ports on the fly –Blocking ports may not work –May require IDS to detect activity Aggessive applications –Can cripple bandwidth –Can force increased infrastructure costs

P2P Risks Legal Risks Trade secret violations Unlawful file content –Pornography –Criminality Copyright infringement –MP3 files –Photos –Plagiarized research or papers

How Can They Sue Us? Let me count the ways…

Litigation Focus Major Claims –Invasion of privacy –Criminal Prosecution –Copyright infringement

Invasion of Privacy Failure to inform users of monitoring Misuse of information obtained

Criminal Prosecution Certain file content prohibited –Child pornography images –Possession a crime –Both federal and state laws –Much variability in state laws

Copyright Infringement Major source of litigation activity –“perfect copies” issue Increased protection under federal law –Digital Millenium Copyright Act Digital works more strongly protected Where or where has “fair use” gone?

Plaintiffs Motion picture industry Trade associations –RIAA –Business software alliance Individual Artists

Defendants You Your students Grokster

Is P2P Sharing of Copyrighted Files Illegal? Yes

MGM v. Grokster 125 S. Ct –June 27, 2005 FindLaw.com

Methods of Protection Policies and procedures Audit and Review Electronic Monitoring Intrusion Detection Systems User education and training Sanctions