OT: Kazaa News

[Paradog]

From Kaspersky.com

A U.S. federal judge in Los Angeles has given music production companies
and film studios the green light to begin legal actions against the
popular "Kazaa" file-swapping service.

Entertainment media companies such as film studios and music production
labels accuse Kazaa's parent company Sharman Networks Ltd. of copyright
infringement and have filed a law suit to prove it in court. The
defendant, Sharman Networks Ltd., countered that the suit should be
dismissed on the merits that the company is located in Australia and
registered as a corporation in the South Pacific nation of Vanuatu. The
plaintiffs argue that Kazaa offers services to 21 million Americans and
therefore U.S. courts should have jurisdiction rights.

The judge's court ruling, issued this past Friday, finds the defendant,
Sharman Networks Ltd. can indeed be sued for infringement of U.S.
copyright laws because the company has significant business in
California and is accused of copyright piracy within U.S. borders.
Sharman Networks Ltd. plans to file a counterclaim that will, according
to the company, "set forth the full story for the first time."

The case brings to mind the media industry's battle with the Napster
file-swapping network that eventually led to the nearly complete
destruction of the company. Kazaa now finds itself in hotter waters with
the judges ruling to allow the law suits, though, having its
headquarters located outside the U.S. is a luxury Napster did not have.