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By Andy McCue, 30 July 2003 14:14

NEWS Large firms whose employees are illegally downloading music from the internet are more at risk from record industry lawsuits than individual file-sharers, according to legal experts. The warning follows moves by the Recording Industry Association of America to sue hundreds of individual file-sharers who use services such as Kazaa for breach of copyright. Speaking at an event with music industry and technology experts, Liz Bell, solicitor in IT law and intellectual property at law firm Morgan Cole, said companies are becoming increasingly concerned about just what their staff are downloading from the internet during work hours. IT staff are also almost always the worst offenders because they are up to speed with the latest technology and easily able to find ways around the corporate network firewall. Bell said: "Companies haven't taken on board what the risks are." But she admitted illegal pornography on corporate networks is currently far more of a concern for companies than music downloads. Paul Rutherford, chief marketing officer at content filtering software company Clearswift, said the recording industry will soon turn its attention to high-profile corporate names that will act as a future deterrent to music piracy. He said: "The biggest problem is the reputation of the organisation itself. If the music industry wants someone to go after it won't be the kids but the companies. They're the ones with deep pockets. It is the organisation that is going to be at risk." Employee acceptable use policies for internet and email are also more important than technology, according to Morgan Cole. These then need to be strictly enforced, said the law firm. But Ellis Rich, CEO of the Independent Music Group, said the RIAA had over-reacted and that CD music piracy is still more of a threat to the music industry than file-sharing services like Kazaa. He said: "I'm more concerned with physical piracy. That's were the money is. And that money is most likely going to organised crime. I've seen an Eminem greatest hits album. The only problem is he hasn't made one."