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Kazaa Parent Co. Sharman Networks, U.S. Record Labels Spar in Aussie Court

Authored by Mark Hefflinger on November 29, 2004 - 4:21am.
Sydney -- In an Australian court on Monday, the major U.S. record labels and 25 other companies commenced their arguments against peer-to-peer file-sharing software provider Sharman Networks, distributor of Kazaa. In addition to copyright infringement, the record industry is suing Sharman, its chief executive and several partners in Australia for misrepresentation to the public, unconscionable conduct and civil conspiracy to inflict harm. Music industry attorney Tony Bannon told Australian Justice Murray Wilcox in court on Monday that Kazaa profits "by selling advertising space on the computer screens of the users while they are in the very act of infringing copyright," ZDNet Australia reported. Bannon also argued that ownership of Sharman, which has been kept secret through its registration on the tax haven island of Vanuatu, is in fact controlled by Kevin Bermeister, CEO of Kazaa partner Altnet. Bermeister's home, along with the home of Sharman CEO Nikki Hemming, was raided in February as part of the Australian record industry's investigation of Kazaa. Bannon said there is "ready inference that Kevin Bermeister is in fact the ultimate controller of Sharman," ZDNet reported. While Sharman still battles the record industry in Australia, the U.S. Court of Appeals has upheld that Sharman is not liable for any copyright infringement committed by Kazaa users, prompting the music industry here to lobby lawmakers for new statutes that prohibit file-sharing.
http://makeashorterlink.com/?L11C255E9 
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http://www.sharmannetworks.com 
http://www.altnet.com

tags: Law | U.S | Aussie | Sharman Networks | Kazaa Parent Co |



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