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Lance Cottrell, founder and president of Anonymizer.com says one reason he has chosen not to extend his identity-cloaking service (which sells for $30 a year) to peer-to-peer networks is the threat of lawsuits from the music industry. Anonymizer provides only anonymized Web browsing and dial-up services.

"We have not enabled our service to work with the Gnutellas of the world," Cottrell said. "The problem is that the RIAA has the kind of money that, whether you're right or wrong, you're out of business. It's not whether you win or lose, but whether you survive the litigation."

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