BusinessWeek posted an analysis of the Digg fiasco that has been going on all week. For those of you that haven't been paying attention, Digg users are pissed because a user was banned for posting HD-DVD keys, and so the user created a new account and started a virtual riot. Then Digg founder Kevin Rose said that he sided with the poster, and that Digg would allow stories to be posted and deal with the consequences afterwards.
Since when did social networking make it OK for people to break the law? Digg is opening itself up to huge legal issues by allowing copyrighted content to remain posted. Whether you agree with DRM or not, Napster proved that companies are liable for the material that is posted. Digg's attempts to shield their users to enable their "journalistic freedoms" is noble but misguided.
Reminds me of a line from "Men in Black": "A person is smart. People are dumb." That is why we have an Electoral College, shareholders elect CEOs, and juries consist of less than 15 people. Trusting the mob to lead you in the right direction is more often than not a bad decision. You better believe as a business owner, if my customers told me to break the law, I wouldn't.
And unfortunately, this situation is probably far from over. It's ok, Kevin. Shawn Fanning still found work after the RIAA shut Napster down.