Good Morning Chairman Stearns, and other members of the Subcommittee. On behalf of the FBI, I would like to thank you for this opportunity to address the FBI's role in combating the exploitation of children through the use of Peer-to-Peer networks.

The FBI's Innocent Images National Initiative is comprised of twenty-eight Under-Cover Operations. These operations involve FBI Agents on-line in an undercover capacity to seek child predators and individuals responsible for the production, dissemination, and possession of child pornography. This is accomplished by using a variety of techniques, to include purchasing child pornography from commercial web sites, creating on-line personas to chat in predicated chat rooms, and co-opting predators' e-mail accounts. Innocent Images has grown exponentially between fiscal year 1996 and 2003 with a 2050% increase in cases opened (113 to 2430). Between fiscal year 1996 and 2003, Innocent Images has recorded over 10,510 cases opened.

Recently, Peer-to-Peer networks were identified as a growing problem in the dissemination of child pornography. A GAO report published in September of 2003 indicated a four-fold increase in reports complaining of child pornography in Peer-to-Peer networks. In 2001, the FBI received 156 complaints about child pornography in Peer-to-Peer networks. By 2002, the number of complaints had risen to 757. This increase may be attributable to, among other things, the popularity of Peer-to Peer networks, as well as the overall increase of child pornography available on the Internet. These programs are free and are easy to install. In May of 2003, Sharman Networks, the developer of a very popular file sharing program, reported that their software had been downloaded more than 230 million times. This software and other file sharing programs like it, allow users to share files with anyone on the network. This creates an environment of relative anonymity amongst users however, this anonymity is only perceived, users are not truly anonymous.

Using Peer-to-Peer software, users' computers connect directly to one another to share files, without going through a central server. Nevertheless, each time a computer accesses the Internet, it is associated with an internet protocol, or "IP" address. Therefore, despite the fact that a Peer-to-Peer connection is not facilitated by a central server, users can still be identified in real time by the IP addresses associated with their computers.

IP addresses are the only way to definitively identify a particular user on a Peer-to-Peer network. In this environment, users of Peer-to-Peer often believe they are anonymous. There is some degree of truth in this assertion as peers in these networks are anonymous to each other. That being said, they are NOT anonymous to law enforcement. Through the use of covert investigative techniques and administrative subpoenas, Agents can determine which individual users possess and distribute child pornography over these networks. Utilizing search warrants, interviews, and computer forensic tools, Agents can strengthen their cases and these individuals are eventually indicted and prosecuted.

During the initial phases of several Peer-to-Peer investigations, Agents have determined Peer-to Peer networks are one of many Internet havens for the open distribution of child pornography. Several of the individuals using Peer-to-Peer networks to distribute child pornography openly describe the content of the material they share as "illegal." This further contributes to the feeling of anonymity in these networks and leads users to become even more brazen in their conduct.

To combat this, the FBI has created an investigative protocol for Peer-to-Peer investigations to begin aggressively apprehending offenders. After developing a Peer-to-Peer investigative protocol with the Department of Justice's Child Exploitation and Obscenity Section, a number of cases were initiated to determine the technique's viability. Detailed discussion of these cases could possible jeopardize ongoing investigations, however, I would like to assure this subcommittee that the FBI is aggressively pursuing the trading of child pornography on Peer-to-Peer networks.

In these investigations, Agents have found child pornography to be readily available using the most basic of search terms. Often, child pornography was easily available when innocuous search terms were used, such as 'Brittney Spears' or the word 'young'.

Additionally, the FBI is exploring the possibility of working with Peer-to-Peer software clients to allow them to more effectively warn users against the possession, distribution, or production of child pornography. These industry members may also be interested in placing icons or a pop-up link from their home page regarding subjects wanted by the FBI for exploitation of children by use of the Internet.

While these efforts may not prevent someone from downloading the material in question, it will put the user on notice that they are, more than likely, violating the law. These efforts will also assist investigations as it will eliminate the ability of the subject to claim ignorance of the law.

In closing, the FBI looks forward to working with other Law Enforcement agencies, private industry, and the Department of Justice in continuing to combat this major crime problem. The protection of our children requires the combined efforts of all sectors of our society. I would like to thank chairman Stearns and the committee for the privilege to appear before you and for your interest in this major crime problem.