There are two different issues here. The one is going after Kazaa and the other file sharing systems, either legally or technologically. The other is going after the individuals that distribute copyrighted materials on the various systems.
The record industry was recently handed a big loss in the ruling that they couldn’t shut down Kazaa or the other systems because they were merely the carriers of the copyrighted material and had no control over it. The industry is trying to develop and get legal authority to use technology that would effectively bring down file sharing systems, but that is some time in the future.
What this round of settlements shows is that they are taking to heart the legal ruling in the Kazaa case, which said that Kazaa is just the carrier and the individual users were doing the piracy out of Kazaa’s control. From that it logically follows that the way to go is to chase after the individuals.
It’s a retail method of attacking file sharing, going after the individuals, rather than the wholesale method of going after the systems. However, it has the advantage that finding the file sharers liable is essentially a slam dunk.
If someone has copyrighted material that they are offering for distribution without authority of the copyright holder, then they’re in violation of the copyright laws and liable for civil damages (and possibly criminal prosecution). Yes it is fairly expensive for the record companies to sue the individuals, particularly in the first series of cases, but as these actions get more established, each will get cheaper. In addition, by starting after the biggest offenders, the possibility of substantial recoveries or settlements is there. It’s sort of hard to generate much sympathy for people who have thousands of ripped songs available to the world being chased down by the owners of the copyrights of the songs.
If the individual enforcement of the copyright laws by the record companies gets rolling, people will quite rightly be inhibited from offering copyrighted materials for fear of legal action. Once it becomes known that the record companies are suing people that distribute copyrighted materials, a simple cease and desist letter or e-mail will suffice to get the materials removed in most cases. Yes, the will be individuals who slip under the radar screens of the record companies, but serious enforcement will cut down widespread and rampant internet file sharing.
All in all, it seems a shift in stragegy that is likely to have long-term results. In addition, those who are defending file sharing by saying that it is used for public domain materials will be free to use it for such.