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Kazaa to Face U.S.
Courts; Future in Doubt
Sydney, Jan. 15 2003 (INS News) --
Sharman
Networks Ltd., owner of the world largest file swapping
service Kazaa will have to face legal challenges from
movies studios and music labels in the United States
after a the Californian District Court ruled that
company ‘engages in a significant amount of contact
with California residents.’
Sharman
Networks has attempted to argue that it is not bound
by United States law as it is based in Australia and
incorporated in the nearby nation of Vanuatu. The
California court disagreed saying that it was clear
by the popularity of the service, that some of the
143 million users worldwide downloading the software
were California residents.
The
companies are suing Sharman Networks claiming that
their software lets people swap copies of songs and
videos, breaching copyright. Music labels have blamed
declining sales on the service. Kazaa says it is disappointed
by the decision but will continue to defend the claims
made by the companies. If the movies studios and record
labels are successful, Kazaa may be forced to close
and even face bankruptcy.
| Kazaa
Today |
| 3.2
million users online Sharing 634 million
files
5 million GB of data |
|
Kazza
had around 3.2 million users online today, sharing 634
million files, totalling 5 million GB of data that were
located on people machines around the world. The latest
song and movie releases were available along with music
video clips and software programs.
While
file swapping services are only part of the problem,
the increase use of recordable CD’s, make it easy
to swap music between friends, with no loss in quality
like its predecessor the audio tape. However, many
of the companies that are suing Sharman Networks produce
the CD’s and the hardware required to make them. Major
music labels and movie studios are working with Microsoft
and hardware markers in producing technology that
makes it harder to swap music and movies online.
The growth in broadband internet connections, which
allow higher speed downloads, making it possible to
download a complete DVD movie in a few hours, are
concerning movie studios. They fear they will become
the next target for file swapping services, as faster
speeds and DVD burners make it possible for people
to reproduce DVD’s, which they claim would effect
sales.
Kazaa
replaced the famous Napster service which was based
in the United States, where closed after the landmark
ruling that file swapping services were illegal. The
ruling caused companies like Kazaa to move offshore
to other countries to avoid legal action. Kazaa left
the Netherlands last year when a successful legal challenged
required Kazaa to stop distributing its software.
Services
like Napster started the long list of file sharing
programs that have been forced out of business by
the courts. However, as soon as one closes another
new player fills the void and continues to attempt
to avoid the courts. With legal action taking months
or even years, the file swapping services continue
to operate and keep testing the reach of the United
States court system.
--
Glen
Burns in Sydney. E-Mail: gburns@insnews.org
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