File sharing
File sharing is the process of making digital files, such as software, documents, audio recordings, and video content, available for distribution or access over computer networks, often employing peer-to-peer (P2P) protocols that enable direct transfers between user devices without relying on centralized servers.[1][2] Emerging prominently in the late 1990s with services like Napster, which facilitated rapid music file exchanges, file sharing revolutionized data dissemination by leveraging decentralized architectures where participants act as both providers and consumers.[3] This technology underpins protocols like BitTorrent, which fragment files into pieces for efficient, resilient sharing across vast user bases.[4] While file sharing enables legitimate applications, including open-source software distribution and academic collaboration, it has become synonymous with widespread copyright infringement, as users routinely exchange protected works without authorization, prompting extensive litigation by rights holders against platforms and individuals.[5][6] Landmark cases, such as the 2001 shutdown of Napster following RIAA lawsuits for contributory infringement, highlighted tensions between technological innovation and intellectual property enforcement, leading to decentralized successors that evaded early legal challenges.[7] Economically, empirical analyses reveal mixed causal effects: some peer-reviewed studies indicate file sharing accounts for only a minor portion of declines in recorded music sales, potentially offset by increased demand for live performances and merchandise, while industry estimates assert substantial revenue losses exceeding tens of billions annually across creative sectors.[8][9][10] Despite enforcement efforts, including statutory damages and international treaties, unauthorized file sharing persists on a massive scale, underscoring ongoing debates over optimal policy balances between access, innovation, and creator incentives informed by first-principles considerations of scarcity and marginal costs in digital replication.[11][12]