Plans to hard-wire copy protection into popular digital music and video devices are being shelved as the consumer-electronics industry grapples interminably with antipiracy policies, standards and consumer rights.

Until recently, many makers of chips for consumer-electronics devices had hoped to build anticopying technology into the chips themselves, a process known as "hard coding." That technique speeds up a device, saves on battery power, and makes the antipiracy technology harder to break through. Prominent security researchers say that hardware-based rights management technologies are more secure than alternatives that rely primarily on software.

Chipmakers have not completely abandoned efforts to create such copy protection features. But developers now say that they're ready to move ahead with what some call a second best alternative in order to feed surging demand for chips bound for new multimedia devices such as MP3 players, cell phones and PDAs. This so-called soft coding--putting antipiracy rules into software that is more accessible to users--is slower and less secure, but lets companies adapt to rapid changes in the market more easily, developers say.

"In the past we've invested in hardware security that has not borne fruit," said Michael Maia, vice president of marketing for Portal Player, a company that makes multimedia chips focused on portable devices. "But there's a big risk there, because the market changes so much. Until it stabilizes enough, we will be soft-coding."

The impasse over copy protection has stretched on for years, feeding distrust between the entertainment industry and consumer-electronics makers swept up in the digital technology revolution. Delays in hammering out antipiracy features for MP3 players and other devices have led to at least one proposal for legislation that would mandate the creation of a government-backed copy protection standard--a plan that was greeted with a standing ovation in Hollywood and catcalls in Silicon Valley.

That doesn't mean chipmakers oppose hard-wired copy controls. Indeed, the trend toward software-based protection is at odds with the longer-term direction of companies such as Intel and Microsoft, and their so-called trusted computing initiatives. Under both companies' plans, a hardware-based authentication system would let computers guard against hackers' intrusions and viruses, as well as potentially block use of pirated software, songs or movies.

Hard coding has proven extraordinarily elusive, however, making software-based copy controls the best alternative for bringing passable, but not perfect, antipiracy features to the coming generation of digital devices.

"For the average user, soft coding is sufficient. For the hacker, soft coding leads to a wide-open hole," said Maia. "But that's the reality right now, because the business is in flux."

Users of the IRC-Chat.net network could have a harder time downloading copyright movies and television shows, as the US-based Motion Picture Association of America has reportedly contacted network officials and advised them to take an active role in stopping the file distribution.

Earlier this week, DALnet took such a step, banning people from using its network to trade illegal files on a large scale.

However, IRC-Chat will likely not be actively tracking down file trading channels to shut them down. Server admin Fish told IRCNews, "We will not be actively monitoring what a channels purpose or roll is. We will only start taking action against users or channels when the relevent authorities advise us that a illegal activity is taking place."

IRC-Chat released an explaination on its website, part of which read: As much as the Network Administration does not agree with the DMCA and laws that cover copyright infrigement, neverless the DMCA is still law in America and the copyright laws can be enforced in most counties around the world. If we choose to ignore or rebuf the MPAA in regards to these matters, the people that run this network (Server Admins, IrcOps etc) would become liable according to law, and could be prosocuted for "Aiding and Abetting" the distribution of copyrighted materials.

If the information on their site is up to date, IRC-Chat currently has 7 US servers.

So it appears the network will comply with the authorities when requests through the proper channels are made. Otherwise, there will be no witch-hunt for warez traders.

The statement further speculates that we have not seen the last of IRC networks adopting "no piracy" policies when necessary: For those of you that might now be scared by our "change in policy" we can tell you this. IRC-Chat was not the only IRC network that was contacted recently in regards to the transfer of copyrighted materials. Several other major networks have also recieved notice, and the actions that they are taking will most likely be similar.

"DALnet IRC Network, formerly the world's largest IRC Network has announced that the IRC network has implemented a new "policy" that will phrohibit "Using a channel for the primary purpose of facilitating the transfer of files", as of March 1st, 2003. This will be another staggering blow for the formerly largest IRC network in the world, this comes after one of the many suprises on DALnet, such as the recent DDoS attacks against the network."

Effective March 1, 2003 DALnet will be enforcing a change to its Acceptable Use Policy (http://www.dal.net/aup) which will prohibit "Using a channel for the primary purpose of facilitating the transfer of files".

DALnet is by its very nature a Chat Network. Its purpose is for people around the world to join together in channels and converse about subjects of their choosing. New technologies have sprung forth since the birth of DALnet back in 1994. Programs such as Kazaa and Napster have generated a desire for Internet users to freely transfer files. They have also generated a large amount of controversy regarding the legality of doing so. DALnet is not, nor does it wish to be thought of as, a file sharing network.

While we recognize that the transfers themselves do not happen on our network, and are a product of a direct connection between the clients involved, we have chosen to not support channels who primary focus is the distribution of files. Though we respect the right of our users to transfer files between themselves on a limited basis, should our staff determine that a channel exists for the primary purpose of facilitating such transfers, it will be deemed in violation of our Acceptable Use Policy and closed.

OSLO, Norway--A court has fined a Norwegian student over his song-swapping Web site in a ruling hailed by the music industry on Thursday as a victory for giants such as EMI and Sony, who say their revenue has suffered from online music piracy.

The case, the first in Norway on downloading music without copyright holders' approval, followed similar rulings in favor of the industry in neighboring Sweden and Denmark.

The court in the southern city of Lillehammer ruled Wednesday that Frank Bruvik, 24, broke the law when he made his own version of the now-closed U.S. Web site Napster.com, enabling users to download songs by clicking on links on his site, Napster.no.

"This was the most high-profile piracy site in Norway for downloading music and an important victory for us," said Saemund Fiskvik, director general of the International Federation of the Phonographic Industry in Norway.

Bruvik was sued by the IFPI, together with Norway's TONO performing-rights society, the Nordic Copyright Bureau and major music companies including EMI, BMG, Sony Music and Universal Music.

Bruvik was ordered to pay 100,000 crowns ($14,520), about a fifth of the music industry's original claim of estimated losses of sales caused by Napster.no. Big music labels blame online piracy for a dramatic drop in CD sales.

"I call it even," said Bruvik's lawyer Magnus Stray Vyrje.

"The ruling said it is illegal to distribute the links, but that it's legal to use them. That is a victory for all Internet users in Norway," Vyrje said, estimating that Norwegians make about 60 million to 100 million copies of pirated music per year.

Vyrje said his client would probably appeal and has four weeks to do so.

Fiskvik said Bruvik, who had developed the program as a school project in 2001, shut down the service after just a few months after the lawsuit was filed late that year.