In late 2003 record companies started suing individuals that were downloading free music. With file-sharing networks like Grokster and Morpheus it will be much harder for recording industry to track down files that are uploaded by individual users.

With Supreme Court now involved they are expected to make some type of ruling in June 2005 on what if any action should be taken against makers of file-sharing network software.

The wrong decision could discourage future development of products like iPod or other file-sharing software programs that could be used for legal purposes.

Since Grokster and Morpheus do not monitor or have any knowledge of who or what is being downloaded, a federal judge in Los Angeles and U.S. 9th Circuit Court of Appeals rejected copyright infringement charges against both these file-sharing networks.

Based on 1984 ruling of Supreme Court that stated use of Sony Betamax, which allowed users to make copies at home of copyrighted TV programs, was legal.

The recording industries angle last week was that approach companies like Grokster and Morpheus are making by advertising their software will provide access to free copies of copyrighted materials should allow them to be sued and shut down.

While jury may be out on this one for sometime – file sharing networks and free music downloads will continue with most users not really worrying about getting sued, since most do not download free music in excess of a few files per month.

Copyright 2005 - Tim Somers, 3G Enterprises, LLC

And what of audio? Is their any point in spending time and money developing a detailed and textured surround-sound experience if a significant portion of your audience will be listening on earbuds while travelling on a train?

These examples may be extreme, but they do highlight differences between way a music download service works and way a movie download service would. Music, by its nature, is immensely portable. OK, sound quality from an iPod over a pair of earbuds may be nothing compared to that from a decent hi-fi set-up, but for most people most of time, it’s a close enough approximation. That won’t be case with movies. Why did those tiny, battery powered, pocket TVs never really take-off? For same reason.

Apple CEO, Steve Jobs, who knows a thing or two about movie industry through his stewardship of Pixar, has often said that he’s not interested in producing a video iPod because no-one wants to watch movies on a small screen. Jobs is right about most things, and I think he’s right about that. Sony disagrees. It will be interesting to see who’s right.