Paid music download services have started to erode the popularity of free person-to-person file-sharing programs, evidenced by the recent deal struck between Pennsylvania State University and a revamped version of Napster, the music-swapping network that started the file-sharing phenomenon.Napster 2.0 was released on Oct. 29, becoming the sixth program in a legal download market already occupied by RealNetworks' Rhapsody, eMusic, Musicmatch, Musicnet and Apple Computer's iTunes.

In its original form, released in 1999 by Northwestern University student Shawn Fanning, Napster allowed users to search for music in a database compiled from the files of users around the world. After record sales began to decline, the Recording Industry Association of America (RIAA) launched a sweeping anti-piracy campaign. The U.S. Court of Appeals for the Ninth Circuit ruled in 2001 that Napster was in violation of copyright laws, forcing the file-sharing program into bankruptcy.

Napster 2.0 sells individual songs for 99 cents and full albums for $9.95. There is also a monthly subscription available for $9.95 that offers streaming audio and unlimited downloads.

According to Penn State spokeswoman Amy Neil, the deal struck between that school and Napster will provide students with free access to 40 streaming audio channels and temporary downloads.

"For students who want to own the songs, (it costs) 99 cents for a permanent download that can be burned," Neil said. "It was through student input that this decision was made."

Penn State President Graham Spanier appears very optimistic about this arrangement. Spanier told the New York Times on Nov. 7, "Students have told us how important this is to them and with the record industry's new enforcement efforts, we think they'll be very excited to participate."

A Nov. 11 editorial in the Collegian, the Penn State student newspaper, was not as optimistic as Spanier. Although the editorial states that the deal responds to "students' desire to have a legal file-sharing option on campus," it questions some of the finer details, especially the temporary downloads that cannot be transferred to compact discs or portable music players. Additionally, Napster was billed a poor choice since it exists only for Windows XP and will be unavailable to Macintosh users. The Collegian raised concerns over the program's cost and whether costs would be tacked on to a compulsory $160 information technology fee that each student pays.

Neil said that while the financial specifics of the contract between Penn State and Napster are being kept confidential, "the cost is not being passed on to the students. They will not see an increase in the technology fee. The university is bearing the cost."

According to a Nov. 6 Penn State press release, the Napster service will be tested by 18,000 undergraduate students across Penn State campuses in the spring semester. The service will be available to all 83,000 students next fall.

Not all schools have had such bright developments with file-sharing. The Library Access to Music Project (LAMP), a file-sharing service developed by two students at the Massachusetts Institute of Technology, was shut down earlier this month. After complaints by Vivendi Universal, M.I.T. suspended the LAMP service, which uniquely delivered music to students via cable outlets in dormitories. Vivendi Universal claimed that LAMP's supplier Loudeye, a digital media firm based in Seattle, failed to provide necessary licenses to distribute music.

While the entertainment company appeared mollified by LAMP's removal, there is still a rash of finger-pointing surrounding the dispute. LAMP creators Keith Winstein and Josh Mandel told the New York Times on Nov. 3 that Loudeye had ensured licensing details were settled. However, Loudeye told the Los Angelos Times earlier it had never promised to secure licenses to distribute the music that it provided.

"It doesn't seem that M.I.T. was trying to steal anything, but rather to simply hew to the letter of the law in an incredibly byzantine area," John Zittrain, a professor of Internet law at Harvard, told the New York Times in the same article.

At Brandeis, Boogle, the file-sharing search engine created by Union Secretary Danny Silverman '05, has been shut down for most of the semester. But Silverman believes the campus is handling Boogle's absence.

"Boogle is currently on hiatus, and people seem to generally be okay with that," Silverman wrote via e-mail. "Due to many circumstances, people are sharing far fewer files this year, and what is being shared is just the newest mainstream crap anyway, so at this point Boogle is not incredibly effective as a search system."

The story of the year in the realm of digital music has been iTunes. Unveiled in April, the iTunes Music Store became an instant success on the Macintosh platform, selling over one million tracks in its first week. iTunes sells songs for 99 cents and most albums for $9.99.

Yet Apple accounts for three percent of computer users; Windows users were originally shut out from iTunes. Last month, Apple released a Windows version, with a debut equally successful to the Mac rollout. Time magazine dubbed iTunes Music Store the "Coolest Invention of 2003."

Silverman says that the music industry is "finally learning to embrace digital music." He personally endorses iTunes, but maintains the recording industry still needs to take many steps to properly offer digital music.

"I use iTunes and love it, but it is the exception to the rule," Silverman wrote. "The industry still needs to loosen or eliminate their digital restrictions management software and give consumers what they want - perpetual ownership of music, not some strange and revocable license for limited listening which is only valid under specific circumstances."

Despite the success of iTunes and the agreement between Penn State and Napster, the RIAA's concerns are hardly abated.

"It is encouraging that these online services are doing so well, (but) piracy is still there," said Jonathan Lamy, a RIAA spokesman. "There is a continued need for education and enforcement. Do both; enforce and educate and then offer great legal alternatives. There are still a number of people who still get their music for free." He noted Kazaa as an example of free filesharing.

Lamy indicated the trade group is optimistic with both the Penn State arrangement and iTunes' success. "Obviously, there is a great hunger on college campuses for music," Lamy said. "We think this is great news for college students and the industry. It's a win-win situation for everyone."

Lamy reiterated the sweeping nature of the RIAA's enforcement campaign. He said the RIAA has filed 341 lawsuits against individual file-sharers. But this spate of lawsuits has drawn some criticism this year, especially surrounding the case of Brianna LaHara, a 12-year-old girl from Brooklyn.

Lamy said the RIAA started sending letters to identified file-sharers in October as "one last chance" before a lawsuit, and 204 were sent out last month. Lamy also heralded the "Clean Slate Program," an initiative designed for "people who have engaged in file-sharing but don't do it anymore and want to come clean."

Although the RIAA does not appear to be slowing its enforcement campaign, there are signs that legal forms of digital music is building a solid market. Silverman, while seemingly optimistic with the advent of iTunes, believes that in the future, questions regarding digital music will be driven by the underlying technology.

"The recording industry cannot control the advancement of technology, and their current restriction systems ensure that music made now will not be compatible with future systems. That is the nature of closed off and proprietary software," Silverman wrote.