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But that's changing with the emergence of newer, better peer-to-peer programs such as BitTorrent and eDonkey.

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Movie piracy is still considered nascent because it takes far more technological might to download a flick than it does to download a song. Much of the increase was attributed to digital music sales, through Apple's iTunes and other paid online services, as well as resurgent CD sales.

Overall the music business sold 817 million units - including albums, singles and digital downloads - in 2004, a 19 percent jump from the prior year, according to research firm Nielsen SoundScan. Hollywood and the music labels call the scale of online piracy 'mindboggling.' They argue that billions of dollars worth of lost sales and licensing fees are at stake.Д¬ritics say those claims are overblown and point to signs that the industry is in good health. Weiss and other peer-to-peer defenders say a ruling against them could apply to Apple or any other technology company that manufactures any device used to steal copyrighted works online. 'It's about technology and who gets to control it, plain and simple.' 'This case is not about bad actors,' said Michael Weiss, the CEO of Morpheus developer StreamCast Networks, at a press conference early this month. It appears that no less than the future of the Internet - and possibly the U.S.

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The key question in Grokster is whether peer-to-peer software providers should be held liable for illegal uses of their technology.Д«oth sides of the battle portray the outcome in apocryphal terms. The court found that there were critical differences between Napster and its Grokster & Co. Last summer, the appeals court that shut down Napster refused to do the same with the developers and distributors of the Grokster and Morpheus software, which allow users to trade music and movie files without going to a central site like Napster. The technology first gained national attention four years ago when a startup called Napster fueled massive music piracy before record labels won a court order shutting down the service. Grokster, is about an increasingly popular method for Internet downloading known as 'peer-to-peer' file sharing.

Supreme Court for help in a case that is remarkable on many fronts, including the extraordinary interest it has drawn not just from the technology sector but also from myriad groups like the Christian Coalition of America, the American Civil Liberties Union, the National Taxpayers Union and the commissioner of major league baseball. Next week, entertainment companies will ask the U.S.

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'We think, very conservatively, that 750 million unauthorized or free songs are swapped online every month.' 'Apple Computer has spent a couple of years working its way to 300 million songs sold (for its iPod),' said Eric Garland, the CEO of file-sharing tracker BigChampagne. To some analysts, the study offers further proof of the myriad ways that piracy is thriving despite efforts by the entertainment industry to curb it. About 10 million are getting bootlegged music and movies through e-mail and instant messages. The Pew Internet & American Life Project, in a report released Wednesday, found that 7 million Americans - or about 9 percent of Internet users - are currently making unlicensed copies of music from someone else's iPod or similar MP3 device. But a new study suggests that free music downloading is alive and well in the virtual world. The online store that supplies 99-cent songs for your iPod just celebrated its 300 millionth sale.

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