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This is a clear violation of rights and it creates ethical issues because it is very difficult to track and eventually prosecute those persons in order to make then pay for the author copyrights.
Ethical Issues as the mentioned above are one of the causes of websites failures, such as the case of Napster...
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This website was forced to shutdown because of an injunction order that eventually caused the bankruptcy of the company. Napster failed because they didn't pay the copyright to company records of the music their users were trading. This is the reason e-business need to be very cautious about how they do business and the services they delivered...
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