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Judge Rules that Kazaa can be Sued

scubacuda writes "According to this News.com article, U.S. District Judge Stephen Wilson said a lawsuit against Sharman Networks (the makers of Kazaa) could proceed, since Kazaa software had been downloaded and used by millions of Californians. (The Australia-/Vanuatu-based company had filed a motion to dismiss the lawsuit, arguing it was not bound by U.S. laws since it did not have substantial contacts with California.)"

28 of 427 comments (clear)

  1. Great... by diamond0 · · Score: 5, Insightful
    So now a presence on the Internet, and contact with the world, means that I'm potentially liable for expenses related to travelling anywhere in the world (in this case California) in regards to legal action?

    Swell, I guess I better shut off my web server.

    --

    --
    There is no hatred more pure and true than that expressed by children.
    1. Re:Great... by mccalli · · Score: 5, Insightful
      Just don't turn up. After all, if I receive a letter from Uzbekistan telling me I'm due in their courts (I'm British), there's no reason I have to accept their judgement.

      California doesn't rule Australia. There's no reason an Australian has any need whatsoever to listen to what a Californian judge says. He says you should turn up? Fine. Ignore him.

      Cheers,
      Ian

    2. Re:Great... by giel · · Score: 5, Insightful

      Yeah, and manufacturers of CD-R's, harddrives and MP3 players should be dragged in court too.

      It's the people who use Kazaa to share copyrighted stuff that break the law. Not the people who provide Kazaa. We don't put Ford into jail because people violate laws using cars. We don't put states into jail because people violate laws on the road.

      What are the costs of an illegal copy? A few cents. Let's double that, so we get a 50% cost, 50% gain balance. And now explain to me why a CD in a shop costs about $20? (in the Netherlands)

      The media industry and the public have to change their minds and accept we do have internet, and we can copy ourselves for very low prices and that is not something one can sell or someone is willing to pay for anymore...

      --
      giel.y contains 2 shift/reduce conflicts
    3. Re:Great... by giel · · Score: 5, Interesting

      Uhm, uhm. Americans have proven before they can act very strange and explicit of it comes down to things they believe are a threat to their country or society. Like:
      ' Ah, you don't want to help us smoke the criminals out of their holes? '
      ' Fine, we have reasons to believe you hide terrorists en produces nuclear weapons! '
      and:
      ' No sir, you can't do that, I'm an American citizen. ' in foreign countries

      OK, I know not all Americans are narrow minded chauvinistic egoists.

      --
      giel.y contains 2 shift/reduce conflicts
  2. Re:was fun while it lasted by Urkin · · Score: 5, Funny

    If kazaa network went down, kazaa lite would be as useless as the gnutella network.

  3. Seems like fair play to me by jenkin+sear · · Score: 5, Insightful

    Actaully, suing an australian company in a US-based court seems pretty reasonable, after the recent libel suit in australian courts against a US-based company...

    The question of whether kazaa is, in fact, violating the law should be settled in court somewhere, and somehow it doesn't seem like vanatu is the venue.

    --
    What a strange bird is the pelican, his beak can hold more than his belly can.
    1. Re:Seems like fair play to me by rking · · Score: 5, Insightful

      The question of whether kazaa is, in fact, violating the law should be settled in court somewhere, and somehow it doesn't seem like vanatu is the venue.

      That can only be settled on a per-country basis. We already know that they're not breaking the law in the Netherland (at least not by operating a file sharing service, they might be parking illegally or assassinating rivals for all I know).

      Only the Vanatu courts can determine whether they're doing anything illegal in Vanatu. Only the Autralian courts can determine whether they're doing anything illegal in Autralia, onlythe US courts can determine whether they're doing anything illegal in the USA and only the Iraqi courts can determine whether they're doing anything illegal in Iraq. Of course, deciding that they are doing somethign illegal in any particular country doesn't automatically give that country the power to do anything about it.

      There's no one universal answer that can be "settled in court somewhere".

  4. I wonder how long it will be ... by portnux · · Score: 5, Interesting

    before the California media moguls will be shipped to Iran to face beheadings for making movies and music that does not conform to the laws of Islam?

  5. Flashforward by salesgeek · · Score: 5, Insightful

    Two years from now we will read: In other news US Appealate Court has rescinded the decision of RIAA v. Kazaa stating that the trial court had no jursidiction to hear the case. RIAA will appeal to the supreme court...

    $G

    --
    -- $G
  6. The best thing Kazaa could do... by DarthWiggle · · Score: 5, Interesting

    Just don't respond to the lawsuit. Ignore it. They'll lose by default, of course, but it's a civil suit. The court awards RIAA millions of dollars in damages.

    But then who enforces that decision?

    Feh, I'm soon to be a lawyer, but in this case, Kazaa shouldn't subject itself to the costs of defending itself in this sort of suit if they don't have the resources to make it a good fight. This is terrible legal advice, but it's good practical advice. If RIAA can't enforce a verdict, any victory they have will merely be symbolic. And it won't matter a hill of beans as far as precedent is concerned because a) there's plenty of precedent that what Kazaa is doing is wrong and b) the precedent would only have true practical effect for a Kazaa-like company based in the United States.

    Now, if this were a criminal case, it would be a completely different matter, because then there would be a rigorous enforcement system in place.

    But Kazaa could reasonably just ignore this suit, take the loss, and stick up their collective middle finger at it.

  7. Re:And so it begins once again..... by schmink182 · · Score: 5, Insightful
    I doubt Kazaa will just fall over and die so quickly. But whether they do or not, the effects of this precedent is much farther reaching than P2P networks. If someone can be sued outside of the US from inside it, this will affect the entire internet. Hopefully Kazaa (or anyone else) will fight back to turn around the decision to keep the internet the way it is.

    As far as a (ad free) replacement for Kazaa goes, though, check out WinMX.

  8. The Good, The Bad, The Ugly by Scalli0n · · Score: 5, Interesting

    The Good: I downloaded well over 2000 mp3's and 10 movies with KazaaLite

    The Bad: Kazaa is going down.

    The Ugly: Kazaa is spyware.

    All things taken into account, hopefully the next p2p network won't have the spyware built in.

    ANYWAY...I thought Kazaa was a self-supporting network, i.e. people act as super-nodes who hold a list of files for others to search, and there's no centralized server. What control does Sharman have over whether or not the Kazaa network is still around, sure, they can stop the downloads of the client, but if the client can also act as a server...meh, it's unstoppable!

    --
    Sig & Below
    Yuck Fou
  9. Law is relatively clear by Anonymous Coward · · Score: 5, Funny

    This is hardly a surprise, and not simply limited to 1) the US or 2) Internet issues. If any business has significant contacts with a state, that business may be sued in that state. Of course, it might be difficult to get at the assets of that business located in another country, but that's a different issue.

    Italy and Australia have both issued recent high profile opinions that allow US businesses on the Internet to be sued in their respective countries. This is hardly a new thing.

    Unless of course you're a slashdotter who doesn't know a damn thing about the law.

  10. Yahoo! by deepchasm · · Score: 5, Insightful

    Even if the case came to court and the judge ruled in favour of the media companies, would Sharman Networks have to pay?

    There is a precedent for cases like this. Yahoo! did not have to comply with the French order because Yahoo! has their servers in the US and they are a US company.

    How is this any different?

    So what if millions of Californians use Kazaa? There are many times that number of Kazaa users who are not Californians. Millions of French people could access the US yahoo.com site - the ruling says:

    Although France has the sovereign right to regulate what speech is permissible in France, this court may not enforce a foreign order that violates the protections of the United States Constitution by chilling protected speech that occurs simultaneously within our borders

    What laws are the MPAA and RIAA using to sue Sharman Networks? Are they applicable in Australia or Vanuatu

  11. Id like to buy the RIAA/MPAA a clue please Bob by happyhippy · · Score: 5, Insightful

    You shut down one, its replaced by more.

  12. Stupid! by zmooc · · Score: 5, Interesting
    I just put online these instructions on how to make a joint. Something that's illegal in the US - I live in the Netherlands. This is exactly the same as what Kazaa does, only their instructions are for your computer and they tell them to you from Australia. I kindly ask all of you that live in California to perform these instructions, as Kazaa asks you to let your computer perform their instructions.

    This decision by your judges has now made it possible for anyone in your country that does not like my instructions (which should be protected as Free Speech, something which your country is supposedly so proud of) to sue me. Not that I'd be responding or something but it's just stupid. I urge you all to actively do something about this aggresive act of world-domination which should even be illegal under in your constitution. You guys aren't making any friends this way.

    --
    0x or or snor perron?!
  13. What the RIAA should do. by glrotate · · Score: 5, Insightful

    Is get the judge to issue an order pulling kazaa.com's domain registration as well as ordering Global Crossing to block their traffic.

    1. Re:What the RIAA should do. by DarthWiggle · · Score: 5, Interesting

      Actually, this presents a fascinating question. Why the hell doesn't the RIAA "report" Kazaa to the California Attorney General with evidence of criminal wrongdoing? Why all this fiddling around in civil courts when the practical effects of a civil verdict (an injunction that will likely be ignored or avoided, a money damages award that would probably go unpaid) are so much less than criminal sanctions?

      I can't decide what the RIAA and MPAA are up to. Are they just looking for exposure? Are they trying to generate some cash? Are they trying to establish civil precedents that will allow them to sue OTHER CONTENT PROVIDERS that have nothing to do with MP3 distribution and which could provide them with a much larger payoff? Are they trying to establish a chain of civil verdicts that will allow them to go to Congresscritters and "encourage" them to pass laws specifically targetting p2p?

      Or are they just stupid? (In the un-troll sense. I literally mean, do they honestly think they're going to win anything substantive?)

      If they wanted to get rid of Kazaa, they'd sic the criminal prosecutors on them... or are RIAA and MPAA afraid that what Kazaa is doing isn't wrong enough to be considered "criminal"?

  14. Fair play, yeah, right. by Tranvisor · · Score: 5, Insightful

    I suppose one could only call this fair play if one thought that US laws should be applied everywhere in the entire world.

    Kazaa may have been downloaded to the US, but the company, its programmers, and its owners have never had a presence here. That means, guess what, you can't sue it here. The supreme court of california has already ruled on this and even if the little judge of the case says "These cases aren't the same like that" If and when Kazaa gets an appeal, it'll go straight to the Cal Supreme Court who will knock it down again on jurisdictional issues.

    If KaZaa had an office in California, it'd be different, but they don't. When the US steps on little countries' soverignty to regulate their buisnesses themselves all it does is get those countries pissed off at us.

    Win or lose, until any of those buisnessmen from that company get on a jet and come here, the MPAA will gain nothing but at most a hollow and ineffective paper victory.

  15. Not only that, but. . . by kfg · · Score: 5, Informative

    a EULA is a contract, not a law. Illegal terms cannot be rendered legal merely by contract.

    EULA's are written *generically* to attempt to claim every term of contract that *might* be legal anywere.

    Haven't you ever seen the term on generic legal documents "Void where prohibited"?

    Just because it's in the EULA doesn't inherently mean it binds you, although the writers would like to *believe* that it does. Since most people do, it works.

    Don't be afraid to dissent or even disregard terms of your EULA where you have the legal right to do so.

    KFG

  16. They should all move by MoneyT · · Score: 5, Funny

    Kazza and all the P2P places should move to Sealand http://www.sealandgov.com/

    --
    T Money
    World Domination with a plastic spoon since 1984
  17. Re:Good by Evil+Adrian · · Score: 5, Insightful

    Most of those patches are being distributed illegally as well. I'm pretty sure if you read the licensing agreement, you have to download it from their site or from an authorized mirror. And if you don't like it, that's just too damn bad -- that's the license agreement.

    Porn, as well, is freely available in some places without Kazaa, and most of the Kazaa porn is pirated as well. (I'm sure all those ripped porno DVDs were public domain, right?)

    HTML is just a language. You can use English to say something illegally too.

    Firstly, FTP has greater accountability. You can't open a Warez FTP site to the public and not get caught. And secondly, FTP was created to transfer files, not to transfer files *AND* mask identities *AND* advertise to pirates.

    Kazaa knows that a ton of people are using their network to illegally traffic things, and so they can get money by advertising to them. They know that illegal activity is rampant on their network, and they don't monitor it or report it, which is basically aiding and abetting. So I guess if you wanted to get really technical, we could make a federal case out of this...?

    But, going strictly on intent, they are knowingly aiding pirates, which means less money is making it into the hands of the people that are supposed to be getting paid for their work, which means civil suit, and a completely justified one in my opinion.

    --
    evil adrian
  18. Don't we already have something like this? by Exiler · · Score: 5, Informative

    It's this little thing called Gnutella, works like a charm

    --
    Banaaaana!
  19. Nothing to do with imperialism. by ArsSineArtificio · · Score: 5, Interesting

    U.S. District Judge Stephen Wilson said a lawsuit against Sharman Networks (the makers of Kazaa) could proceed.

    (The Australia-/Vanuatu-based company had filed a motion to dismiss the lawsuit, arguing it was not bound by U.S. laws since it did not have substantial contacts with California.)"

    Wow... Why isn't this a surprise. The Americans decide that people outside their own country are bound by their laws.

    If the RIAA wants to take on Kazaa, take them on in Australia. Oh wait, no that wouldn't work, because the Australian justice system wouldn't waste their time on this.

    Someone need to go let the states know that they don't own the world, yet, and until they do, companies from other countries do not lie under their jurisdiction.


    Your disgust is founded in ignorance.

    Anyone in a common law system (USA, Australia, UK, etc.) can sue anyone else. There are only two considerations: a) whether it can be heard in a particular court and b) whether there is anything practical to be gained by it.

    Question B is not so much a question of law as a question of strategy. A court which would issue a decision can enforce its will only so far as the person losing is present within their jurisdiction (either they live there, or have assets there). People have sued the government of Iran in US federal court, and have won, and have collected their judgments out of funds belonging to Iran which are present in US banks. But if you were to sue North Korea and win (probably because nobody showed up to represent North Korea), there'd be little you could do to collect your judgment, because there wouldn't be any assets of North Korea within the jurisdiction of the court.

    So, setting aside question A for a moment, the RIAA can sue Kazaa in federal court in California. The question is whether they have anything to gain by winning. As a previous poster pointed out, Kazaa could just ignore the whole thing and take a loss, if they don't have anything *in* the US that a judgment could seize. (The RIAA probably wants an injunction of some kind, but even still it's questionable how useful it would be for the US to order Kazaa not to do business here anymore.)

    Question A has a lot more to do with the law, and jurisdictional questions are quite complicated. The basic idea is that you can only bring suit against someone in a place if that someone has had something substantial to do with the place. (Lives there, does business there, has assets located there, committed an act there, etc.)

    The decision referred to in the headline is that the judge decided that the fact that many people had downloaded Kazaa software in California was a sufficient contact with California that Kazaa could be sued there. He reached this decision after examining the law of California. If Kazaa appeals, the court of appeals will either confirm that this is the law, or will overturn the judge and not permit him to hear the case.

    In light of the above, your rant is more than a little silly. Every nation is willing to submit every person to their own laws - the only question is whether it will do the plaintiff any good, and whether the courts of that nation will let such a lawsuit go forwards. The US is no different from anyone else in this respect. "Companies from other countries" do lie under US jurisdiction, insofar as they have ever had anything to do with the United States.

    --
    All employees must wash hands before seeking equitable relief.
  20. subversive broadcasts? by phr2 · · Score: 5, Insightful

    I wonder whether that judge thinks it's ok for Voice of America to be sued in China or Iraq or wherever else the local laws don't approve of it, since people are listening to it there. The whole point of VOA is to get information to people that their governments don't want them to have. Well, Kazaa is now trying to get software to us that our government doesn't want us to have. It's ironic to see what happens when the shoe is on the other foot.

  21. Not Surprisng - Welcome To The 2000's by fire-eyes · · Score: 5, Insightful

    In the days that gun manufacturers can be sued for what gun owners do, this is not a surprise.

    Personal responsibility is out the window, and I don't see it ever coming back.

    --
    -- Note: If you don't agree with me, don't bother replying. I won't read it.
  22. Re:Future headlines by csnydermvpsoft · · Score: 5, Funny

    Actually, more like:

    Judge issues injuction against Kazaa
    Injunction issued against Kazaa
    Judge declares Kazaa violated the law
    Kazaa guilty
    Kazaa out of business
    Kazaa filing for bankruptcy
    Company X buying Kazaa's assests
    Company X steps forward, buys Kazaa's assets
    Ask Slashdot: Whatever happened to Company X?
    Ask Slashdot: Where did Company X go?

  23. Jurisdiction by yuri+benjamin · · Score: 5, Insightful

    From the article:
    Sharman Networks...should be held accountable by U.S. laws.

    Bzzzt! Wrong! They should be held accountable by Autralian and Vanuatan laws. The United States (Je naait 't steeds :-) does not have jurisdiction over the world. Not that they'd have any trouble getting an Australian court to bend over for the US.

    If I owned a company and got a summons from a US court I would RSVP that I am declining the invitation (and contact a lawyer to prepare for any possible extradition hearing).

    I don't think my government would send me over there unless the US told them I'd killed someone or something like that.

    --
    You make the mistake of thinking you can educate the fundamental stupidity out of people. You can't.