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The FTC declined to identify the companies or organizations involved, but said they were both "private and public entities, including schools and local governments." The companies and organizations ranged in size from "businesses with as few as eight employees to publicly held corporations employing tens of thousands," the FTC said in a statement. It said sensitive data about customers and employees had been shared from the computer networks of the companies and organizations and made available on Internet peer-to-peer (P2P) file-sharing networks. The information was accessible to "any users of those networks, who could use it to commit identity theft or fraud," the FTC said. "Unfortunately, companies and institutions of all sizes are vulnerable to serious P2P-related breaches, placing consumers' sensitive information at risk," FTC chairman Jon Leibowitz said. "For example, we found health-related information, financial records, and drivers' license and social security numbers -- the kind of information that could lead to identity theft," Leibowitz said.

The DMCA Chills Free Expression and Scientific Research. Experience with section 1201 demonstrates that it is being used to stifle free speech and scientific research. The lawsuit against 2600 magazine, threats against Princeton Professor Edward Felten's team of researchers, and prosecution of Russian programmer Dmitry Sklyarov have chilled the legitimate activities of journalists, publishers, scientists, students, programmers, and members of the public. The DMCA Jeopardizes Fair Use. By banning all acts of circumvention, and all technologies and tools that can be used for circumvention, the DMCA grants to copyright owners the power to unilaterally eliminate the public's fair use rights. Already, the movie industry's use of encryption on DVDs has curtailed consumers' ability to make legitimate, personal-use copies of movies they have purchased. The DMCA Impedes Competition and Innovation. Rather than focusing on pirates, some have wielded the DMCA to hinder legitimate competitors. For example, the DMCA has been used to block aftermarket competition in laser printer toner cartridges, garage door openers, and computer maintenance services. Similarly, Apple has used the DMCA to tie its iPhone and iPod devices to Apple's own software and services. The DMCA Interferes with Computer Intrusion Laws. Further, the DMCA has been misused as a general-purpose prohibition on computer network access, a task for which it was not designed and to which it is ill-suited. For example, a disgruntled employer used the DMCA against a former contractor for simply connecting to the company's computer system through a virtual private network ("VPN").