Colleges and universities that don't do enough to combat unauthorized distribution of copyrighted music, movies and TV shows over their computer networks may be at risk of losing federal funding starting this month.

The Higher Education Opportunity Act of 2008, which went into effect on Thursday, urges universities "to effectively combat the unauthorized distribution of copyrighted material by users of the institution's network."

This means an end to peer-to-peer file-sharing on a number of college campuses. The regulations were met with about opposition due to fears over invasion of privacy. However, university officials are largely satisfied with the regulations, with many having already put such measures in place years ago.

It remains to be seen whether the investment will weaken the prevalence of digital piracy. Educational institutions that don't comply may lose eligibility for federal student aid.

Nonetheless, many colleges are worried about monitoring or blocking content. Though schools can get a great deal of flexibility as long as one "technology-based deterrent" is employed.

The options for schools include limiting bandwidth for peer-to-peer networking, monitoring traffic, or blocking illegal file sharing altogether.