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Kazaa Fights Back

Cracula writes "CNET is reporting that tonight Kazaa filed a lawsuit against the major record labels and Hollywood studios, asserting that they are attempting to stifle a legitimate and potentially profit-cutting business model. Sharman Networks (owner of Kazaa) says that their model is fundmentally different than Napster because their major goal is to make money off their companion program Altnet that delivers authorized, paid content. While this may sound like a shot in the dark, last year a federal judge actually ruled that the record labels' current efforts to provide online access to their music may run afoul of anti-trust laws. Kazaa may actually have a hope."

14 of 378 comments (clear)

  1. As outlandish as Sharman's desires may seem... by Anonymous Coward · · Score: 5, Insightful

    ....part of me wishes he'd win everything he's going for just to really screw the music industry in a way they could not imagine (that is, lose the right to enforce any of their copyrights). Yes, I'm aware this will cause quite a bit of chaos, but still, I can't help feeling that they almost deserve a swift kick in the balls like this.

  2. Re:that makes no sense by Skadet · · Score: 5, Insightful

    No no, you missed it. It's not the violation of a copyright that they're claiming is legal; it's the Altnet service which "delivers authorized, paid content".

  3. Re:Kazaa? by Ponty · · Score: 5, Insightful

    Who ends up getting blown up in the end?

    Sure the RIAA might lose its Hillary Rosen (or other beloved long-time character that's quitting,) but she'll just come back in the sequel. The lesson: There's always another Hillary Rosen.

  4. Re:Money question by NightHwk1 · · Score: 5, Insightful

    Kazaa does sell -a lot- of ads, plus they don't require the same server power as Napster did. Also, companies will pay more for spyware than a simple banner ad.

    If Napster made money, Kazaa is making much more.

  5. Wake up and smell the plot by Powercntrl · · Score: 5, Insightful

    There's 2 ways to kill Kazaa. One is to get rid of the beast itself... This is what they're trying. The other, to scare off all the users offering files.

    I doubt the former will work. Kazaa seems to me like it's got its ducks in a row well enough that they won't be touched legally. The latter seems far more likely. Unfortunately for its users, if it is proven that Kazaa itself is legal but is being used by the users for illegal purposes, guess who's going to be the next target for legal action... The users offering large amounts of shared files.

    You have to remember, Kazaa isn't fighting for the legal rights of its users, it is fighting to be able to keep running as a business.

    Someone once made an analogy on here about unauthorized sharing of copyrighted material over P2P networks to people breaking the speed limits on the highways. To expand that analogy further... You can't ALWAYS break the speed limit on the highway. Sure, you may be able to do 70MPH in a 55MPH zone if it's what everyone else is doing, but you can be damn sure that everyone else is going to slow down once a cop decides to catch whoever is in the lead. You can't break the speed limit when there's a cop in the next lane and you certainly can't do it when it's 3:00AM and you're the only car left on the road.

    Hearing about someone sharing files on Kazaa being busted will most certainly have the same effect as the cop busting the person in the lead on the highway. Everyone who gives a rats ass about not being the NEXT example is going to disable sharing or get off Kazaa altogether.

    With a major drop in files, it will cause many users to just leave. Then you'll be left with the 3:00AM highway situation - they'll be so few users actually sharing content on Kazaa that busting them all could be realistically done.

    Kazaa surviving isn't a win for the users, it's just the first battle in an ensuing war.

    --

    ---
    DRM is like antifreeze, to the MPAA/RIAA it's sweet, to the consumers it's poison.
  6. Re:that makes no sense by timotten · · Score: 5, Insightful

    In Internetland, several companies started out offering free services, hoping to later entice users into paying for a similar or enhanced service, and some services (*ahem* slashdot) which had planned to be free/hobby activities grew into commercial services. Their argument might go something like this:

    The standard Kazaa system was deployed with two goals. In the short term, the network's ad revenues will cover various logistical expenses. In the long term, it will demonstrate to consumers (home users) and producers (independent artists) the value of P2P. However, because Kazaa run by unpaid users and producers, some participants in the system don't perform consistently: There's no guaruntee that a file will be available, or that the version of a file you download today will be available tomorrow. Our for-pay service, Altnet, will provide higher quality, better selection (artists looking for money will be more willing to participate), and better marketing (prioritization in search results). In fact, all value in P2P is the presence of other parties willing to share disk space and bandwidth. If we hadn't deployed Kazaa as a free and pure service before Altnet, we could not have reached the critical mass required to make AltNet viable.

  7. Re:The solution is an iron fist by cheshiremackat · · Score: 5, Insightful

    This is the first well written rebuttal to the 'pirates' among us... However, you fail to address one point... consider the bottled water industry, they compete with the *free* water from the taps, and do quite well... What the RIAA needs to do is to differentiate their products from those you can download... how about the new EMINEM w/DVD features on the CD...that'd be a pain to DL... and remember when album cover art was important...

    IF the RIAA wants to compete then make it worth my while to pay for it... I will... all KAZAA et al. represents is 4 million consumers saying that things have to change... that also means that 4 million consumers are a willing market for music that offers something better than 4 minutes of DL and 128kbs or $16.99 @ HMV

    _CMK

    --
    Bad spellers of the world untie!
  8. Re:WHAT FREEDOM? by cioxx · · Score: 5, Insightful
    Freedom to get music and videos for free?? If Kazaa charged a monthly subscription, people like you who coward behind 'freedom', would not even install it! You'll find some other scum comapny's software; a company with a business to make money without paying for content.

    Freedom as in Fair Use, dipshit. I never claimed I used Kazaa or any other P2P.

    I find it really hillarious how you call me a coward and post as an AC. You've got to see the irony there, chief.
  9. Re:that makes no sense by Joffrey · · Score: 5, Insightful

    You are actually missing the point. Let me see if I can do better than cnet.com.

    Kazaa/Sharman (Kazaa, for simplicity), is *not* trying to argue that the RIAA's (and its members') illegal conduct justifies its own promotion of piracy. This is an entirely separate claim altogether. In essence, they are claiming that they and Altnet *tried* to get licenses to the majors' music catalogs (so that they could *sell* P2P access and/or copy-protected copies), but that they were illegally refused.

    Assuming (accurately) that the majors control the vast vast majority of music copyrights, and that they illegally agreed (not yet proven) not to deal with Altnet/Kazaa, but instead only with their own online distribution arms, then a judge can find that they have thereby inhibited legal competition in the online distribution market.

    That being said, one common consequence of copyright (or other intellectual property) -related antitrust conduct is that the copyrights are rendered "unenforceable." If that occurred, then even if Kazaa's actions constituted copyright infringement (actual or inducing), they cannot be held liable because the copyrights at issue would be unenforceable.

    In other, more simple words, the counterclaim doesn't attempt to justify Kazaa'a purported wrongs based on bad conduct by the record companies... it's just a really lovely side effect.

    In all likelihood, such a draconian remedy would never be issued by a judge (imagine if all of the copyrights of all the majors were summarily rendered unenforceable.... anarchy!). Having worked for the lawyer in question, though, the likely intent is to gain negotiating leverage by the simple possibility of a "death sentence," however remote.

    Glad to see them fighting back.

    --
    No, really! I'm one of the *good* lawyers!
  10. Cracking a nut with a sledgehammer.... by Mark+(ph'x) · · Score: 5, Insightful

    The nuts going to get smashed, and nothing useful will come of it.

    Seriously though:
    "Sharman is asking the judge to declare the copyright holders guilty of antitrust and related violations, and to bar them from enforcing any of their copyrights."

    You dont think the *AAs are going to go absolutely all out to get this thrown out of court? I mean forcing all their works into the public domain might do wonders for the 'information wants to be free crowd'... but realistically the *AAs will fight tooth and nail!

    The *AAs would be prepared to blow all their money in lawyers and bribes to avoid a verdict like that... which would really obliterate their business.

    I think theyre asking for too much... and because of this they may end up with nothing. Kazzza was an example of semi-legitimate peer to peer, and was a good example to show off legal p2p working. (As like its *cough* only a small minority sharing illegal stuff *cough*)...

    But with claims like "bar them from enforcing any of their copyrights"... i mean for fucks sake, they only make profit out of holding copyrights.. im finding this difficult to explain.. but like i say, the *aas will pay anything to stop that verdict.

    Maybe a slightly less inflamatory suit wouldve done more good for p2p imho.

    --
    those who control the past, control the future. those who control the present, control the past.
  11. Re:Didn't the Terms and Conditions say ... by Anonymous Coward · · Score: 5, Insightful

    Right, as with all other filesharing networks. This poses a serious question (one that will be answered in the courts): if a product clearly states its intended use yet a consumer abuses it anyway, who should be held liable? The consumer, or the one who created the product? If we liken this to the "guns don't kill people; people do" argument, then obviously the answer is "the consumer". Also, since there are laws which you break when you kill someone with a gun, you are actually prosecuted for it (assuming they find you), but the gun manufacturer or the gun shop that sold it does not.

    However, with Kazaa there are way too many users to prosecute that way, so I don't think I'd liken Kazaa to the gun argument. Instead, I think Kazaa is more similar to state-owned roads. The intended use of the roads is clearly stated (er, well usually at least :) yet drivers frequently violate the rules by making illegal U-turns, speeding, tailgating, etc. Obviously the local police force can't go after every single person who breaks the law, since they'd spread themselves too thin enforcing something is relatively trivial compared to more important issues (like saving people's lives), so they catch whoever they can when they can.

    Because of this, I believe a similar approach ought to be taken with Kazaa and other filesharing networks. There's no way in hell the media warlords will be able to catch everyone, nor will they be able to put down filesharing completely (we've seen this hydra-like behavior happen before -- shut down one network, several others appear in its place). Their best bet would be to allow these networks to continue exist, and use the resources they would otherwise spend on shutting them down on 'policing' the networks like traffic cops.

  12. Re:that makes no sense by murr · · Score: 5, Insightful

    That's like claiming that your Heroin trading outfit is legal because now and then, you DO deliver pizzas.

    Besides, I see this lawsuit as a double edged sword. By filing this lawsuit, Kazaa kind of admits that they do conduct business in the U.S., while simultaneously they go to great lengths to assert that they are incorporated in Vanatu.

  13. Why is Kazaa/Napster illegal? by Anonymous Coward · · Score: 5, Insightful

    Why is Kazaa/Napster illegal?

    Can someone fill me in please?

    I mean, I really don't get it why a p2p network would be illegal... Kazaa is not forcing anyone to break laws and steal stuff... There are legitimate uses for Kazaa...

    Wouldn't this be the same thing as making CDR's illegal just because you can do illegal stuff with it? Or you could even make the Internet illegal because well it's used for so many illegal things from warez, music pirating, fraud, child pornography, etc... Where does it end?

    Kazaa, Napster, or any other P2P network should not be held responsible for some peoples' actions that might be illegal. Those people doing the illegal actions should be held accountable. Just because it's a little harder to track down, that doesn't mean it can't be done, and it doesn't mean anyone should blame P2P networks for it....

  14. Re:that makes no sense by harrylackapants · · Score: 5, Insightful

    Ummm... I see that a lot of people miss the point by far. Kazaa itself is not illegal. It is just a tool for P2P sharing of files. It never said it is for sharing illegal stuff (copyrighted material). The fact that the users use it for illegal stuff is a complete different stuff and please keep that in mind. Also according to the laws in most countries the fact that the users "missuse" it, doesn't make the tool itself illegal. It is like trying to interdict knifes cause they can also be used to kill someone beside their intended domestic use.