Kazaa Sues Record Labels for Antitrust Violations, Copyright Infringement

Authored by Mark Hefflinger on September 24, 2003 - 11:00am.

Los Angeles -- Sharman Networks, distributor of the Kazaa file-sharing application, has countersued the major record labels currently suing the company for copyright infringement, alleging the labels are violating federal antitrust laws with anticompetitive behavior and unfair business practices. Specifically, the suit says that Kazaa held fruitful licensing talks with labels including Universal, Warner and Interscope that were later "stymied by industry body directives." It also says that the labels colluded to apply pressure to Kazaa's advertisers, ISPs and business partners. Ironically, Kazaa also accuses the labels of copyright infringement, when they used old versions of the Kazaa software to investigate the downloading habits of Kazaa users for use in their own lawsuits. "The industry has lost its way, choosing a path of endless litigation, rather than accepting a solution to copyright infringement that is available now, and a technology that is inexorable," said Sharman CEO Nikki Hemming. In a statement responding to the lawsuit, a Recording Industry Association of America spokesperson told the Los Angeles Times that Kazaa's "newfound admiration for the importance of copyright law is ironic to say the least."
http://www.kazaa.com
http://news.com.com/2100-1027-5081071.html
http://www.latimes.com/business/la-fi-kazaa24sep24.story
http://www.riaa.com