The bill does however offer an alternative to P2P downloading. This alternative offers the likes of Napster and Rhapsody as part of an included subscription that of course does not transfer once they leave the University. So, all the songs they download while at school become defunct once they graduate.
The MPAA doesn't see this as a problem. Chairman and CEO Dan Glickman said it was a positive step towards thwarting piracy and offered up some unsubstantiated figures to further his cause. "Intellectual property theft is a worldwide problem that hurts our economy and costs more than 140,000 American jobs every year," said Glickman in a statement. "We are pleased to see that Congress is taking this step to help keep our economy strong by protecting copyrighted material on college campuses."
In a letter sent to representatives of this bill, the Association of American Universities did not like this bill in the slightest. In the letter they stated, "The proposal would mandate a completely inappropriate role for the Secretary of Education to single out individual institutions based on information under the control of the entertainment industry, force institutions to seek an unachievable goal of preventing illegal P2P file sharing, and risk the loss of student aid for countless students innocent of any illegal file sharing activity."
Source:
ARS Technica