[Infowarrior] - Makers of 'Kazaa' software settle global piracy lawsuits

[Richard Forno]

Makers of 'Kazaa' software settle global piracy lawsuits
Updated 7/27/2006 8:04 AM ET     E-mail | Save | Print |
http://www.usatoday.com/tech/news/2006-07-27-kazaa_x.htm?POE=TECISVA

WASHINGTON (AP) ‹ The company that distributed software called "Kazaa,"
which made it simple for millions of computer users to download music and
movies over the Internet, has settled global lawsuits brought by the
entertainment industry, the industry said Thursday.

Sharman Networks Ltd., which produced and distributed the popular Kazaa
software agreed to pay an unspecified "substantial sum" in penalties. It
also promised to "use all reasonable means" to discourage online piracy,
including building into its software "robust and secure" ways to frustrate
computer users who try to find and download copyrighted music and movies,
court papers said.

The settlement concludes legal battles against Sharman Networks around the
world.

"Services based on theft are going legit or going under, and a legal
marketplace is showing real promise," said Mitch Bainwol, head of the
Washington-based Recording Industry Association of America, the trade group
for the largest labels.

The head of the Motion Picture Association of America, Dan Glickman, called
the settlement an important victory in a historic legal case.

Sharman Networks indicated it will negotiate licenses with entertainment
companies to distribute music and movies lawfully over its Kazaa service,
similar to Apple Inc.'s iTunes service. The settlement does not prohibit
Sharman Networks from legally distributing copyrighted files.

The Supreme Court ruled last year the entertainment industry can file piracy
lawsuits against technology companies caught encouraging customers to steal
music and movies over the Internet. Earlier this month, in a related federal
lawsuit, a U.S. judge said evidence was "overwhelming" against StreamCast
Inc., which produced similar software for downloading music and movies
called "Morpheus."
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