Just becouse people will download free music for a marketworth of lets say 10 000 dollars, doesnt mean that they would buy it if they couldnt download it for free. So its lame to say that companies lose this and this much money for every copy downloaded.

My first thought was being shocked Kazaa even has $100 million.

This made me think of the the recent D2 vs Goonswarm thread on eve-online. "Post that we paid you millions for the region and we'll confirm it. You save face and we get the region you can't evict us from. No money need change hands."

do we then have to pay for kazaa or pay for files we download off kazaa ?

I'm waiting for p2p apps that use encryption and reverse DRM. That'll solve the problem, and I doubt they're far off. Darknets are nice and all, but not enough imho.

Sharmen shouldnt have to pay anything. It was a p2p network that could be used to transfer anything. It's not their fault their user base is a bunch of pirates.

Limewire then to is just as guilty, though perhaps they tip toe around it by forcing you to accept their EULA that states you are not going to use it for copyright violations. Yea, right.