Countries in the European Union can protect the identity of file sharers on peer-to-peer networks, the EU’s top court has ruled.

On Tuesday, it said member countries can refuse to reveal sharers’ names in civil cases. Legal experts said the ruling is a setback for the recording industry and others attacking digital piracy.

The European Court of Justice ruled on a dispute amoung Promusicae, the Spanish organization for music-rights holders, and Telefonica, Spain’s leading telecom. Telefonica argued it did not have to reveal the name of an Web subscriber for civil actions under a national law based on EU rules. The court accepted that argument.

“Community law does not require the member states, in order to ensure the effective protection of copyright, to lay down an obligation to reveal personal notes in the context of civil proceedings,” the court said.

Promusicae’s losed out Attempt

Promusicae wanted the names of Telefonica’s World Wide Web customers who shared copyrighted material on the Web

using the Kazaa file-exchange software. Like the Recording Industry organization of America, the Spanish group wanted to launch civil proceedings against infringers. However, the court had a different view.

“There are several community directives whose purpose is that the member states should ensure, particularly in the info society, effective protection of industrial property — in specific, copyright,” the court said.

“Such protection cannot, however, affect the requirements of the protection of personal goods. The directives on the protection of personal info plus allow the member states to supply for exceptions to the obligation to guarantee the confidentiality of traffic input,” the court added.

The EU rules do allow individual member countries to set obligations for telecoms to reveal personal details in the context of civil proceedings. However, the court said, it does not compel the member states to lay down such an obligation.

A Question of Privacy

According to the court, the…

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