KaZaA Collapses
MikeKD writes "according to SFGate, KaZaA has announced that it will fold due to the cost of defending itself against the RIAA & MPAA. The timing is notable since on Monday, Altnet (owned by Brillant Digital) announced plans for "sponsored listings in peer-to-peer search" on its "separate [and] secure P2P resource-sharing network"."
I'm actually quite taken with Kazaa's strategy. It seems like they're just going to keep "selling" the name and technology to own of their own subsidiaries or spin-offs, then fold whatever part of the company is currently being sued.
Of course, it's a scam, and the [MP|RI]AA can just pursue the new owner... who can just sell on the name and technology, and fold. They'll have to actually go after the owners personally, which is a completely different proposition.
I'm not exactly enamoured with Kazaa (gnutella for me, thanks), but I think they've hit on the only possible defence to the "litagate them into submission" tactics that the [MP|RI]AA are increasingly turning to. However, it's yet another indicator that if you want to start an innovative business, don't do it inthe USA, or in anywhere with strong treaties with the USA. That part is very sad.
If you were blocking sigs, you wouldn't have to read this.