Kazaa to become legal download service

After a number of legal battles and an Australian court order that
eventually barred the Kazaa peer-to-peer file sharing software from
users in Australia, Sharman Networks—the company behind
Kazaa—has agreed to
pay $100 million in damages
to the record industry. In addition to
the settlement, Sharman also
plans
to turn Kazaa into a legal content download service:

“It has been our long standing goal for Kazaa to play a significant role
in the growing market for licensed online distribution and authorised
exchange of copyrighted content using peer-to-peer technology, and this
settlement ensures that we will be working together with the content
providers to the benefit of consumers, businesses and artists,” said
[Nikki Hemming, CEO of Sharman Networks].

Kazaa will be loosely following in the footsteps of Napster, which also
began as a largely illegal file sharing network before being shut down,
going bankrupt, and finally being re-introduced by Roxio as a legal
music download service. With Kazaa, however, Sharman wants to “make
[peer-to-peer] an integral part of the future of online digital
entertainment,” which suggests a strategy different from that of Napster
and iTunes.

Comments closed
    • AKing
    • 13 years ago

    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.

    • link626
    • 13 years ago

    holy shit.

    how do they have so much money?

    I bet over the last few years, the creators were like: “I’M RICH BIAAAAATCH!”

    • Exchequer
    • 13 years ago

    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.”

    • RickyG512
    • 13 years ago

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

    • wierdo
    • 13 years ago

    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.

    • steelcity_ballin
    • 13 years ago

    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.

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