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Letter Hints at Possible New File-Sharing Scrutiny From Attorneys General

LOS ANGELES (AP) - Companies behind software used by millions to swap music, movies and other files online could be the target of warnings or even legal action by U.S. attorneys general, according to a letter apparently drafted by California Attorney General Bill Lockyer.

The letter, which was cited in published reports Monday and circulated by a trade group representing file-sharing software firms, warns that the states' top law enforcement officers have set their cross-hairs on the purveyors of so-called peer-to-peer programs.

The added state scrutiny could spell potential trouble for the file-sharing firms, who have thus far survived the sort of legal challenges from the entertainment industry that sank the original Napster service in 2001.

Outlined in the letter are concerns that the software companies have not done enough to curtail the unauthorized distribution of movies, music, software, video games and pornography. The letter also questions whether the firms have made it clear to users that they could be held liable for sharing copyright works, or that they could contract a computer virus or be susceptible to identity theft by using their software.

"A failure to prominently and adequately warn consumers, particularly when you advertise and sell paid versions of your software, could constitute, at the very least, a deceptive trade practice," the letter said.