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By 2001, fansubbing had become more sophisticated. CD-ROM had replaced the venerable VHS tape, and high-speed internet distribution sites had replaced "slow mail." Quality control was improving, to the point that some fansubs were rivaling official releases. The development of Bit-Torrent technology also meant that fansubs could be distributed online, bypassing the usual controls. The issue for anime producers was obvious: why would anime fans buy an official product when they could get a decent fansub for free?
This wasn't an isolated case. Both the Recording Industry Association of America (RIAA) and the Movie Production Association of America (MPAA) were wrestling with similar issues. The development of mp3 and streaming technology meant that people could enjoy music and movies on their computer and pass them around to their friends, bypassing the usual controls. From a copyright perspective, this was theft, pure and simple.
Reaction was widespread. The RIAA initiated lawsuits against file-sharing sites like Napster and their users, claiming that music sharing was costing the music industry $4.2 billion per year. The MPAA pushed the Digital Millennium Copyright Act into law in 1998, and placed ads in movie theatres equating file-sharing with "stealing a candy bar."
San Francisco metal band Metallica also declared war on file-sharing site Napster when the group discovered that a demo version of their then-latest single, "I Disappear," had been made available on the server. To publicize their case, drummer Lars Ulrich entered Napster's offices with several boxloads of printouts showing how many times Napster users had downloaded Metallica songs.
Such anti-downloading efforts didn't come without cost. Metallica's anti-Napster stance damaged both the band's credibility and fanbase, with flash animators Camp Chaos mocking "Lar$ UlRICH" in the online cartoon Napster Bad.
The RIAA's many legal blunders, such as suing children, computer illiterates and the deceased for file-sharing, didn't help their cause either.
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