Limewire takes $105 million hit over music sharing

Life

16 May 2011

Music sharing website Limewire may be gone but record labels are making sure it’s not forgotten. Despite being shut down in December of last year, 13 industry leaders have agreed an out-of-court settlement with the company founders for $105 million. Former Limewire CEO Mark Gorton said he’s “pleased that this case has concluded,” according to a report in the Guardian.

The settlement is the culminattion of legal action going back five years that has claimed a number of similar websites.

“This hard fought victory is reason for celebration by the entire music community, its fans and the legal services that play by the rules,” said Mitch Bainwol, chairman and CEO of the Recording Industry Association of America.

This is the last of the major peer-to-peer music sharing programs to succumb to copyright infringement lawsuits. Grokster settled in 2005 for $50 million, Kazaa settled a year later for $115 million, and eDonkey in 2006 for $30 million.

 

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Not that these awards seem to be stopping the continued proliferation of peer-to-peer networks; The Pirate Bay chief among them, even spawning a political entity in Sweden, The Pirate Party, to promote its ‘free’ philosophy. Alas it has made little impression to date, largely due to more pressing issues like the global economic collapse.

The music industry in the US continues to fight copyright infringement on two fronts, targeting peer-to-peer websites and individuals caught making material available to other users. In the US, the Digital Theft Deterrence Act allows for damages of between $750 to $30,000 per infringement, with average settlements ranging from $3,000 to $12,000.

In the meantime, ISPs in New Zealand, France and Ireland are continuing with ‘three strikes’ policies developed in conjunction with the music industry to combat illegal file sharing.

Niall Kitson

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