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Kazaa goes legal

In what the recording industry calls a win situation, four record labels have settled a lawsuit with popular P2P sharing network Kazaa. Under the settlement, Kazaa will pay more than $100 million to four to EMI, Sony BMG, Universal Music and Warner Music. Kazaa will also commit to going fully legitimate said the report.

According to the International Federation of Phonographic Industry, Kazaa has contributed to a significant amount of "damage" in the music industry. IFPI chairman and CEO John Kennedy said "these are very substantial damages being paid -- in excess of $100 million -- and Kazaa will go legal immediately. They've had time to prepare for this." Representatives for the MPAA also said that Kazaa will be implementing technology that will prevent users from transferring copyrighted material over the network.

The original developers of Kazaa, Niklas Zennstrom and Janus Friis sold Kazaa to Sharman Networks in 2002. Since then, Sharman had been dealing with the MPAA and the RIAA over the legality of Kazaa users transferring copyrighted material. Neither Zennstrom nor Friis was available for comment.

Zennstrom went on to create Skype after selling Kazaa to Sharman. Zennstrom ended up selling Skype to eBay for roughly $2.6 billion in both cash and stock.


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RE: and i thought i hated google...
By masher2 (blog) on 7/28/2006 10:03:21 AM , Rating: 3
> "Maybe the music industry should sue themself, for completely botching the opportunity to sell music online"

Why not do it yourself? Start a label, sign some bands, get a website, and sell their music. It's easy to gripe from a backseat position, when you're investing no money, exerting no effort, and taking no risks whatsoever.


RE: and i thought i hated google...
By msva124 on 7/28/2006 1:59:39 PM , Rating: 2
I don't understand. Are you saying they did the best they could in trying to keep up with the online revolution, given their limited resources?


RE: and i thought i hated google...
By masher2 (blog) on 7/28/2006 7:02:02 PM , Rating: 2
There are literally tens of thousands of people selling their music on the Internet right now. Directly-- with no middleman taking 95% of the profits. Almost without exception, none of those people have two nickels to rub together...while the people signed with the big labels are still raking in millions.

Perhaps the labels know a little more than you give them credit for.


RE: and i thought i hated google...
By msva124 on 7/28/2006 10:34:45 PM , Rating: 2
You're right. If anything, the records companies should have waited longer before making music available online.


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