One of the most popular P2P file sharing applications is BitTorrent. It is used for many legitimate file transfer purposes: by open-source software development efforts, games, independent film-makers, and musicians. It is considered more of a mainstream P2P application because it does not offer open search capabilities and the users' Internet Protocol addresses are exposed, i.e., they are not anonymous.
P2P, or peer-to-peer, file sharing network is a network built on the connections of individual users rather than one central network. A P2P network relies on individual users to function as both clients and servers. That is, files are shared between users who access other users' files and allow other users to access their own files (hence peer-to-peer).
P2P networks are generally used to share audio and video but can be used to transfer anything contained in a digital format.
The concern is that P2P file sharing allows its users to download and use music and movies without the permission of the copyright owners, thereby infringing on that material's copyright.
A red flag that you're illegally downloading music is that your music is free and downloaded from a P2P file sharing network. If it is copyrighted (excluding music designated as free using a Creative Commons license or EFF's Open Audio License), especially from a major label, someone will be upset about missing royalties. While there are places where you can find free promotional downloads and free rights music from popular (and not so popular) artists, this is the exception, and most files shared on P2P networks are not this kind of file.
To be as specific/technical as possible, downloading copyrighted material without expressed permission is illegal. Such music must be purchased in order to be legal.
We would like your feedback on this Personal Finance Frequently Asked Question.
