This report explains why public policy should embrace peer-to-peer technologies. It examines the history of technological innovation in communications and the “piracy panics” they cause among entrenched incumbents. For three centuries, in battles over the printing press, telegraphy, mechanical pianos, cinematography, radio, cable television, photocopying, video and audio recorders, and the current generation of digital technologies, public policy has favored technological innovation by refusing to allow copyright to regulate technology. The paper reminds policymakers of the historic lesson that technological innovation promotes political, cultural, and social development, and economic growth.