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Print 30 comment(s) - last by Sazabi19.. on Jun 11 at 12:39 PM

LimeWire founder allegedly moving assets to avoid paying settlement

File sharing services like Napster and LimeWire have in the past been targets of the RIAA and major record labels for allegedly helping users pirate music. More than one file sharing firm has been forced to pay millions in damages to record labels and change their business models.

In August of 2006, the RIAA sued peer-to-peer file sharing service LimeWire for copyright infringement and sought damages of $150,000 for each illegally downloaded song.  The LimeWire case went to court in 2006 only days after Kazaa agreed to a $100 million settlement for music labels. Four years later, the record companies who were part of that LimeWire suit in 2006 are still trying to collect on hundreds of millions in damages for copyright infringement.

Thirteen of the largest companies in the music industry are now looking to courts to freeze LimeWire assets. LimeWire founder Mark Gorton is allegedly trying to evade paying damages by moving assets to an entity that he hopes will be shielded from damages owed to the record industry. 
Reuters reports that among the assets Gorton has moved is 90% of the ownership stakes in the company. The majority of the assets that have been allegedly illegally moved are blacked out in court documents.

The court documents read, "[Gorton and other defendants have] have engaged in a series of fraudulent actions [to] frustrate a legal judgment in this case."

The plaintiffs in the case sought a permanent injunction against piracy on LimeWire last week. Despite the legal proceedings, the RIAA and record industry are alleging that Gorton and LimeWire have continued their illegal ways. The plaintiffs also point out that as of the filing every song on the Billboard Top 40 lists was available on LimeWire.



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good
By tastyratz on 6/9/2010 10:39:43 AM , Rating: 3
I for one based on their ruthless activity lately hope they don't see a dime even if it was purely out of karma alone.




RE: good
By LRonaldHubbs on 6/9/2010 12:30:20 PM , Rating: 3
Yep, the RIAA is such a slimy, POS organization that I'm glad they're having trouble collecting on the settlement. I actually feel bad when I buy music legitimately because I know that I'm supporting those bastards.


RE: good
By Denigrate on 6/9/2010 1:18:18 PM , Rating: 2
I'm at the point now where I only listen to and buy artists who are not signed on one of the big labels. Granted, this is due in large part to my musical taste not running toward the mass produced mediocre sound of most major record label "artists".


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