It all started several months back when Sharman's HQ was raided by the Recording Industry. Sharman challenged the legality of the raids but it didn't make any difference. In the United States, it has been ruled that creators of P2P software cannot be held liable for the actions of their users. Sharman will be praying for a similar outcome of this trial. Not only does the recording industry want all illegal trading forcefully stopped on the network, they also seek compensation for lost revenue due to illegal filesharing on the network, which would add up to billions.
"Sharman paints themselves as the defenders of the interests of fans of music [but] they are trading off the copyright-infringing activities of its users. Far from inhibiting infringements, they are actually encouraging them." said Tony Bannon, counsel for the labels. The start of the battle between the labels and Sharman will be an attempt to determine whether Sharman can be held liable for Kazaa user’s activity or not. If they are found liable, then the labels will seek compensation.
Source:
The Register
Written by: James Delahunty @ 29 Nov 2004 4:17