STREAMCAST NETWORKS™ CEO MICHAEL WEISS IN OPPOSITION TO 'INDUCE ACT' LEGISLATION COMMENTS ON SENATE HEARINGS

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Los Angeles, July 23, 2004 - StreamCast Networks Inc., provider of digital communications solutions and products such as Morpheus™, today released a statement by CEO Michael Weiss in opposition to Inducing Infringement of Copyrights Act of 2004 (known as the "Induce Act" for short), sponsored by Senate Judiciary Chairman Orrin Hatch (R-UT), the latest manifestation of the media industry's short-sighted and misguided strategy to crack down on music piracy through legislation.

"As yesterday's Senate Hearings on P2P did not include anyone from the P2P industry, I urge Senator Hatch, if he is serious in asking for help from the technology sector in drafting crucial legislation, to invite P2P software developers like Morpheus, and/or the trade association it is a co-founding member of, P2P United, to the table with an eye towards suggesting alternative language or solutions to INDUCE," StreamCast Networks, Inc., CEO Michael Weiss stated.

"A balanced and truly open process begs for at least a single developer of P2P file-sharing and searching technology to also be invited. Why is Congress turning a deaf ear towards learning the truth and hearing all sides of the story?"

In his endorsement when introducing the INDUCE ACT in the Senate, Senator Hatch presented a multi-page indictment of P2P companies, littered with inaccurate and misleading statements about legitimate P2P software providers such as Morpheus.

I further urge Senator Hatch and his fellow Senators to take the time to gather accurate information in order to develop a balanced position based upon all of the facts. I particularly urge Senator Hatch to do so before repeating inaccuracies that appear to be speaking points drafted by entertainment lobbyists and transmitting these falsities publicly and on the record in front of his Senate colleagues.

I encourage Congress to not make public policy based upon propaganda and certainly not based upon the lies being perpetrated by the entertainment industry lobbyists. It's in the best interests of society that technological innovation capable of substantial legal uses proceeds within well-reasoned bright line boundaries of the law, unfettered by fears of lawsuits by copyright holders simply because a product "might" someday sometimes be used illegally.

Software like Morpheus and its developer StreamCast Networks, must not be required to solicit approval from every copyright holder in the development process and distribution of innovative products in order to be free of the threat of crippling litigation from special interests groups like the RIAA. This INDUCE legislation represents the few and not the will of the many.

In his testimony today, Mitch Bainwol from the RIAA kept quoting an imaginary 97% figure of infringing files available on P2P Networks. The RIAA lawyers had said in the past that it was 90%.This is a similar proportional argument of infringing files that fell on deaf ears of the Federal Court, and one of the Judges of the Court of Appeals noted that even if that 90% figure was true then 10% of all those millions of files sure sounded to him like a substantial number of non-infringing files were being shared. "It seems the RIAA is intent on making up numbers that they think would play better in front of the Senate committee members than it did in Court.
Bainwol noted that, 'P2P technology is a wonderful thing.' "Who does he think is on the front lines developing and improving this technology in the first place? At StreamCast, we believe that P2P is an important technology that not only can lead to important societal changes but itself reflects important societal changes that have already taken place. Individuals - on their own, unaided by the ever-consolidating media and communications giants - are finding their own new ways of creating and connecting and controlling their own communication channels. Their will - connected and empowered - is prevailing now and Congress should not overlook them."
Congress should facilitate a dialogue among all the stakeholders - including P2P developers who are ignorantly being called "bad actors." Congress has in the past in effect put the stakeholders of the time in a room, said work out the best compromise and solution that you can, tell us what it is, and we'll decide whether to propose and pass it. That's what should be done here.
We encourage individuals to call their Senators and Representatives at 202-224-5225 and/or write (http://www.house.gov/writerep/) their Member of Congress and express their concerns about INDUCE legislation, as it is anti-consumer and anti-innovation.

About StreamCast Networks, Inc.
StreamCast Networks, Inc., creators of the Morpheus software product is a leading global communications technology company that is revolutionizing Internet digital media distribution and communications via software that enables users to communicate directly with one another on an unprecedented scale. Users according to CNET's download.com have downloaded over 124 million copies of Morpheus.

Brian O'Neal
Sr. Director of Communications
StreamCast Networks
boneal _at_ morpheus.com
818-887-8610 ext. 122

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