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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."

54 of 378 comments (clear)

  1. Music? by forming · · Score: 4, Funny

    I thought Kazaa was just for p0rn?

    1. Re:Music? by fruity1983 · · Score: 5, Funny

      Well, this one time I downloaded a porn and it had some pretty sweet rock in the background.

      --
      I am a viral sig. Please copy me and help me spread. Thank you.
    2. Re:Music? by Timmeh · · Score: 4, Funny
      You guys laugh about this, but seriously it happened. I'm a fairly big Beatles fan, but although owning a great deal of their CDs, I had never ventured into their individual solo careers looking for music.

      Until I saw a porno where this guy "picked up" this chick in a grocery store, with John Lennon's 'Imagine' playing in the background.

      'Hey, he made some good music after the Beeatles didn't he?' Since then I've downloaded several Lennon solo songs (I recommend "Look At Me" "Hold On" "Cold Turkey" "Nobody Loves You (When You're Down and Out)"), and have since purchased his _Plastic Ono Band_ album, _Walls and Brigdes_, and tommorrow I'm probably going to down to the record shop to get _Imagine_.

      So no joke, I seriously got into John Lennon through watching a porno movie I downloaded off of Kazaa. I love the internet...

  2. Kazaa? by Anonymous Coward · · Score: 5, Funny

    KHAAAAAAAAAAAAN!.....yelled the angry MPAA while Kazaa laughed and said, "From hell's heart, I stab at thee".

    (er, "KAZAAAAA" I meant...)

    1. 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.

  3. Huh? by Black+Parrot · · Score: 5, Funny


    > Kazaa may actually have a hope.

    How's that? Did someone actually find some good music to steal?

    --
    Sheesh, evil *and* a jerk. -- Jade
  4. Illegal by altaic · · Score: 4, Interesting

    I always thought sabotaging a company's network was illegal. But what, a week ago, there was an artical on /. about a company devoted only to doing that. I'm glad Kazaa is standing up for itself, even though I hate them for their spyware.

  5. 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.

  6. Money question by josh+crawley · · Score: 4, Interesting

    Where's Kazaa getting all this money to throw around lawsuits? And dont tell me that Ad's fully support clusters of multi-homed high speed machines...

    1. Re:Money question by Anonymous Coward · · Score: 5, Funny

      Horny housewife sluts paid for my college education. Don't you tell me ads don't pay off!

    2. 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.

    3. Re:Money question by wilgamesh · · Score: 5, Informative

      Yeah, I wouldn't have believed this myself, but according to a recent wired article on Kazaa, they are making money from ad revenue. I quote the article here.

      "In the last six months alone, PC users have downloaded more than 90 million copies. Kazaa has 60 million users around the world and 22 million in the US - an irresistible audience to marketers. Last year, Sharman raked in millions from US advertisers like Netflix and DirecTV, without spending a penny on content. The chase could have gone on forever."
      -Wired
      http://www.wired.com/wired/archive/11.02/kazaa.htm l?pg=1&topic=&topic_set=

      The article also mentions their side-business model of teaming up with Altnet, by providing access to Altnet products (paid downloads, supposedly). They, I believe, will use the side-business model to argue that the existence of the company depends on a valid, legal method of generating revenue.

      Of course, according to the article only 600 files are offered from Altnet. I think this makes Sharman's countersuit quite flimsy- the bulk of their revenue is derived from ads that sit piggy-back on top illegal activity. I don't think they'll be able to show convincingly that they actually have a viable business model with respect to Altnet.

      Then again, if Altnet and Sharman can spit out a convincingly story of RIAA MPAA etc etc conspiracy to monopolize and deprive, the judges might listen.

    4. Re:Money question by Alsee · · Score: 5, Interesting

      I don't think they'll be able to show convincingly that they actually have a viable business model

      Hmm, where have I seen the phrase "viable business model" before?

      Oh yeah, it was the Microsoft anti-trust settlement.

      Can someone please explain to me since when does the "viability" of a bussiness model have ANYTHING to do with legal/illegal or your rights?

      Someone can have a bussiness model of planting quarters and hoping to harvest dollars when they grow into trees. He has a right to go on planting quarters until he runs out of quarters and goes broke.

      Courts can consider the legality of planting quarters, but they have no place considering whether a bussiness model is viable.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
    5. Re:Money question by Bedouin+X · · Score: 4, Insightful

      It has everything to do with legality in the case of Anti-Trust.

      The monopoly has to prove that they are engaging in a practice for reasons other than undermining potential competition. Generally, this can include selling things at a loss, locking out distribution channels (like the **AA is being accused of here) or any other practice that normally wouldn't make sense unless you had a monopoly-type advantage and were trying to keep competition at a minimal level.

      --
      Dissolve... Resolve... Evolve...
    6. Re:Money question by Idarubicin · · Score: 4, Funny

      That's a terrible thing to say about your mother.

      --
      ~Idarubicin
  7. Kazaa folks are not dumb by cioxx · · Score: 4, Insightful

    This is not a college-project-turned-into-corporation deal, like Napster was. **AA can go fuck itself for all Sharman cares.

    I mean, look her in the eyes. Does she look like someone who would lie down and take from multinational media pimps?

    I'm not a Kazaa user, but I'm with them all the way. If the opportunity cost of getting our freedoms taken away is few more sales of Billboard top 40 albums, then I'm all for piracy.

  8. 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".

  9. Either way... by Kirby-meister · · Score: 5, Interesting
    ...nobody wins.

    If Kazaa wins, the record industry will probably just get more primed for industry-standard DRM.

    If the record industry wins, another 5 Kazaa's will pop up.

    1. Re:Either way... by Lord_Slepnir · · Score: 4, Insightful
      industry standard-DRM will NEVER take hold unless it's forced by law, and then non-DRM countries will make a killing smuggling in non-DRM hardware.

      If there is no law passed, only pressure from the industry, that won't work. The people who do implement it will lose their business to those who don't implement it. And remember, the Tech industry dwarfs the music industry. Will Sony risk its $40 billion electronics division to help out it's 'slice of $20 billion' music division?

      if they do try to get legislation, the tech industry will fight back. It will be like the Jananese attacking pearl harbor all over again. A small defiant attack will bring hell upon them.

  10. My feeling by batobin · · Score: 4, Interesting

    It seems to me that this argument basically admits what the music industry is getting at: that Kazaa enables and almost condones the illegal music trade. I'm speaking straightly from a legal perspective. I know better than to try to get into the philosophical debate. :)

    But just take a look at the issue. Let's say an auto parts store opens its doors. One department is legit. It buys new parts and sells them to customers. The second department is a kind of swap meet where enthusiasts may come and trade their wares. Some of the enthusiasts in this second department trade stolen car parts.

    So some organization sues the auto parts store. Maybe they're an organization of car owners that are sick of their bumpers and headlights getting stolen by car punks. They bring a case to the courts and say, "We're sick of this auto store making an environment conducive to stealing."

    Kazaa, and the auto parts store, reply that their major goal is to make money off their legitimate department. They reply that their business model is being impaired by such an atrocious lawsuit.

    Is this fair? I'm not sure. I'm not a lawyer. Something seems fishy about it to me though...

    1. Re:My feeling by cioxx · · Score: 4, Insightful

      That's a good theory, but unfortunately it doesn't work in the world of intellectual property.

      There is a huge difference between stealing tangible goods like car parts, and stealing a program executable.

      I'm not trying to start a 50+ reply chain where users would debate the morality of downloading a program vs. stealing a candy bar. Just pointing out how the model is flawed when comparing 2 different consumer goods.

  11. They'll never win - Legal fees by jonman_d · · Score: 4, Insightful

    Kazaa will never win for a simple fact: the RIAA/MPAA will spend any amount of money they have to on this case, and there's no chance that Kazaa can even come close to matching the legal spending of these two giants. The *AAs can't allow Kazaa to win this, because they've always painted P2P as a technology that soley revolves around illegal fileswapping.

    Lets face it - 9 out of 10 times in America, it's not who's right and who's wrong, it's who's got more money to spend on lawyers.

  12. Hasn't the Hydra been proven? by droopus · · Score: 4, Insightful

    Years ago, many warned Hilary Rosen that killing off Napster ( a company that WANTED to do business with them) would lead to the Hydra-effect: an emergence of multiple, more difficult to control services that would fill the Napster void. This was, of course, exactly what happened.

    With the announcement of even greater antifilesharing efforts by the labels and the brick and mortar dealers trying to get into the digital game, one must wonder when the music industry will finally realize that the days of sellling copies of Intellectual Property are fast fading, and that directing resources and effort into palatable alternatives (hardware please, that streams any record ever recorded to my stereo rack) is the only alternative?

    If they succeed in killing Kazaa, a thousand more services will pop up in its place. iCommune is already connecting iTunes users via P2P.

    Legal control over culture has never worked before, what makes the RIAA and labels think it will work this time?

    --
    "The pie shall be cut in half and each man shall receive.....death. I'll eat the pie."
  13. Big legal mistake... by Pollux · · Score: 4, Insightful

    In a lawsuit filed late Monday in federal court in Los Angeles, Sharman claims that major entertainment companies have colluded to drive potential online rivals out of business.

    Please. No legal leg to stand on. You want the legal protection of being considered a "business entity" under United States Law, you need to have no blood on your hands. Anotherwards, your business can't be illegal. You will not be awarded jack shit in court if you can't prove that your business is legal.

    So, question: Is Kazaa (as a business) legal?

    The conduct should preclude the industry from being able to defend its copyrights in court, at least until the behavior is corrected, Sharman contends.

    Again: this is makes no sense whatsoever. Anyone who owns a copyright is entitled under copyright law to legally defend that copyright, music (monopoly) / industry included...especially if the distributor doesn't legally have permission (from the copyright owner) to distribute the music...permission would include ownership of the distributed media or rights granted by the owner to distribute the copyrighted material. Neither case exists for Kazaa.

    "What the industry is incapable of doing is realizing that Kazaa is different," said Sharman attorney Rod Dorman. "Now (they) have got to face the legal consequences."

    Different in what way? That you've established yourself in at least six different countries?

    Kazaa made two crucial mistake:

    1) Establishing itself (at least in part...even a part as small as an office building) as a business in the United States.

    2) Suing the recording industry. I mean, a corporation can get sued and move all its operatios to Morocco to protect its dubious legality and continue operations. You sue in the United States, you're a legal target in the United States, plain and simple.

    The facts in this case are the same as in Napster / AudioGalaxy / et. al.:

    1) Your software is being used to distribute music without the permission of the copyright owner (doesn't matter if 1% or 99% of it is legal, at least not to the RIAA).

    2) You admit that your software is being used to distribute such music.

    So, let's take bids now on the remaining lifetime of Kazaa. I say: 9 months.

    1. Re:Big legal mistake... by Dr_Marvin_Monroe · · Score: 4, Informative

      Not exactly right...if it is determined that the RIAA has colluded and attempted to illegally control the distribution end of digital music (termed 'overreaching' in the article), their copyrights are not valid. Therefore, Kazaa is conducting "legal business" in files which have no copyright!

      Also consider that previous attempts were made to secure authorization "in good faith" by others who were later sued into the ground....the RIAA has really set themselves up for this....read this month's wired too...their collusion to control this distribution is well known.

      The best possible defense is a strong offense, and if the people at Sharman have even ONE smoking gun from the RIAA, they're toast.

      The US Senate has already looked into this collusion angle too, it's well known...all they gotta do is prove that they "were not allowed to conduct lawfull business" by the RIAA and it's over.

      This could potentially be the biggest damage to the RIAA of all....think what would happen if they lost copyright on their entire catalogs?....

      This is VERY much down with the Khan quote above "from hell's heart I stab at thee".....go Kazaa

    2. Re:Big legal mistake... by praksys · · Score: 5, Interesting

      Again: this is makes no sense whatsoever. Anyone who owns a copyright is entitled under copyright law to legally defend that copyright, music (monopoly) / industry included...especially if the distributor doesn't legally have permission (from the copyright owner) to distribute the music...permission would include ownership of the distributed media or rights granted by the owner to distribute the copyrighted material. Neither case exists for Kazaa.

      This does make sense in fact. You are not allowed to use intellectual property rights to protect a monopoly (other than the monopoly expressly granted by the ip-right obviously). So for example, IBM was not allowed to use its BIOS copyrights to defend a monoply on PC hardware. Courts can infact void intellectual property rights which are misused in this way.

      It sounds like Kazaa is arguing that copyright owners are in fact a monopoly (presumably Kazaa is arguing that the Music industry is trying to maintain a monopoly in the online retail market), and that they are using their ip to defend this monopoly (that is they are suing anyone who tries to compete in the online retail market for copyright infringement), which would in fact be illegal.

      An interesting feature of this strategy is that it may force any copyright infringement cases to be put on hold until after the anti-trust case is resolved - which may well take 10 years or more (the IBM case it was not reolved until long after it had ceased to matter).

    3. Re:Big legal mistake... by Kragg · · Score: 4, Funny

      Anotherwards, your business can't be illegal.

      Mate, I don't know how old you are, but for your entire life to date, you've been mishearing people when they say 'in other words'.

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      If you can't see this, click here to enable sigs.
    4. Re:Big legal mistake... by DarkZero · · Score: 4, Insightful

      1) Establishing itself (at least in part...even a part as small as an office building) as a business in the United States.

      Actually, AFAIK, Kazaa does not have and has not had any part of its business in the United States. A judge in the RIAA vs. Kazaa suit ruled, however, that because Kazaa's software was "available in the United States" (translation: available on the internet, regardless of where in the world the business or server is), it can be sued in the United States.

      Personally, I wouldn't be surprised if they could eventually find a sympathetic judge to overturn that. That's a rather disturbing precedent, especially if it works both ways, because if everyone that uses the internet is subject to all of the laws of planet Earth, then everyone that's even touched a computer is probably a candidate for execution somewhere.

    5. Re:Big legal mistake... by cgenman · · Score: 4, Insightful
      Please. No legal leg to stand on. You want the legal protection of being considered a "business entity" under United States Law, you need to have no blood on your hands. Anotherwards, your business can't be illegal. You will not be awarded jack shit in court if you can't prove that your business is legal.

      Please. Oil companies? Monsanto? Microsoft? Meat Packing? It's not blood, a little green wipes the red right out. It's green. I don't want to be one more person that cries out about big business owning our government, but you realize that Enron is still around, don't you?

      Again: this is makes no sense whatsoever. Anyone who owns a copyright is entitled under copyright law to legally defend that copyright, music (monopoly) / industry included...especially if the distributor doesn't legally have permission (from the copyright owner) to distribute the music...permission would include ownership of the distributed media or rights granted by the owner to distribute the copyrighted material. Neither case exists for Kazaa.

      You (and a lot of other people) are misreading here. Because of the special status afforded music in this culture, and the blanket licensing terms for radio and other playback, there are certain circumstances under which a company cannot legally refuse to license music. They cannot refuse to wholesale CD's to anyone but BMG record stores, for example. The labels arguably have done this, as exampled by the many online music ventures that failed to receive licenses for music while the industry was plotting its own services.

      1) Establishing itself (at least in part...even a part as small as an office building) as a business in the United States...You sue in the United States, you're a legal target in the United States, plain and simple.

      What part of the Sklyarov / Abode E-books thing did you miss? You are already falling under US jurisdiction if you do a portion of your business with US customers. Now, the US can rule all it wants, but it can't put the equivalent of a lien on a bank in Morocco without approval of the Moroccan court system. They could take the American office, but I'm sure that's rented.

      If you had read the article, you would know that they are suing not for the right to illegally distribute content, but that they are suing because the RIAA had illegally prevented Kazaa from licensing content.

      In Go, this would be called a KO fight. This does not preclude or even reference the legal challenge against Kazaa's network, but in response to that it challenges an illegal practice of the music industry which could shut it down. One could destroy the other, or vice versa. The industry would seem to have the upper hand with more lawyers, but if you read the wired article (now mysteriously down) Kazaa has an amazing network of cross-border legal hurdles necessary for the music industry to jump before cutting off the company that produces the software, at which point the software will still be functional and loose in the wild. They have an amazingly large number of liberties (again, GO), and both sides are vulnerable.

      That fight, sadly, will probably go to the money. But a slap on the wrist by the judge might be enough to require the companies open up to actual licensing of online content, as opposed to shutting down competitors. The justice system is currently terrified of bringing to justice anything large, but Java is now shipping with Windows. Kazaa *might* have enough legal wiggleroom to then license content and have the previous charges thrown out on the grounds that they weren't holding their copyrights properly.

      In other words, if they play the game good enough, they can force the music industry into licensing to them, transition to a probably much more profitable paid service, and come out the other side squeaky clean. Whatever lawyer thought this up earned their paycheck.

      How did this parent get modded up to 5 insightful? He obviously didn't read the article.

  14. Hello WWF by serutan · · Score: 4, Insightful

    For me this situation kind of hammers home the point that today there is no right and wrong, and there are no principles. Their are only winners and losers. Our current version of having faith in the system amounts to hoping that your favorite side has smarter and sleazier lawyers than the other side. I would like to think that Congress and the courts might actually try to figure out what kind of world the public wants to live in and make it so, kind of like government of the people, by the people and for the people. I don't want to jump up and cheer because OJ's lawyers are on my team. But oh well, we have what we have. Our democracy and our legal system are both about as real and meaningful as pro wrestling.

  15. The solution is an iron fist by Anonymous Coward · · Score: 5, Interesting

    Look, I'll be honest. I, like most other people here, have downloaded pirated music from the internet. Its seductively easy, and if you have a nice broadband connection, really quick. The sound quality on the 128k MP3 format may not be "audiophile" quality but for those of us using regular computer speakers, and not $6000 Bose systems, its just fine. Just like with gay sex and open-source software, its easy to think that just because its fun and enjoyable, pirating music is okay, and should be permitted. But thats the wrong answer. Despite all the half-baked rationalizations cooked up by piracy advocates, no one can really refute the truth spoken by the recording industry: Sooner or later, the widespread distribution of near-perfect digital copies will destroy the market for commercial recordings, and make the production of the very product consumers seem so eager to pirate impossible.

    Just take a look at the music you download now. Sure, you may occasionally and self-righteously download the occasional legitimate "teaser" track released legally, or some free songs from no-talent "independent" artists who are giving away their wares because no one in their right mind would pay for them. But you know that almost all of what you download was recorded, produced, distributed, and marketed by the very recording companies you claim to despise, and would never have been committed to disc were there not the possibility of profiting from exclusive distribution rights to their product. Every time you download their songs illegally, you are decreasing the probability that such things will be available in the future.

    Anybody who cares about the system of intellectual property which has made the american entertainment and information technology industries so dynamic, and enjoys their fine products, from Windows XP to the "Lord of the Rings" movies to your new cell phone with built-in games and internet access, should understand the necessity of crushing Kazaa once and for all. We know that what they are doing is reprehensible, and moreover, as the Napster case and every successive suit against online piracy services has shown, illegal.

    But Kazaa is worse than that. They have deliberately created an organizational structure, similar to the front organizations used by organized crime, to continue to operate and profit from their misdeeds in spite of legal sanction from every civilized country in which they have been sued. And like any crime ring, they have gone to great length to extract as much money from their "customers" as possible, using the enticing lure of pirated music to force paid advertising and virus-like spyware on the computers of their users. But in this modern era of international trade agreements such as the WTO, no one is beyond the reach of the law, and I believe that Kazaa can be crushed. They can be submerged beneath a tidal wave of litigation, until one day no internet provider will dare risk allowing them access. Any country which offers them safe haven should be considered a rogue nation and isolated internationally, and considered a sponsor of terrorism. If the world can beat Kazaa, it will send a strong message that theft is wrong, and allow the content producers to lead the way into the beginning of the true information age.

    1. 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!
  16. 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.
  17. 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.

  18. 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.
  19. They just don't get it... by Twintop · · Score: 4, Insightful

    The RIAA isn't going to understand the changing face of the music business until it's too late for them. Their methods of attempting to stop online file sharing is parallel to that of what was happening around the turn of the century with the automobile. Buggy whip manufactures were trying to get laws passed that stated if a carraige didn't have a horse infront of it, it was illegal. For obvious reasons, they did this to avoid being pushed to bankruptcy. The same is happening right now in the RIAA and the music business in general. Instead of cheapening CDs and focusing more on other products that can't be downloaded off of the internet, such as T-Shirts, Concerts, etc., they're attempting to stop the inevitable.

  20. 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!
  21. The Excuse that didn't fly... by Mulletproof · · Score: 4, Informative

    "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."

    And basing their reason for existance around this singular Altnet software is beside the point entirely. THE POINT is whether Kazaa is facilitating piracy, not if they can make money off some ambiguous subscription service. Simply making money doesn't magically give them legitimacy.

    Hopefully, they won't try to justify themselves through Altnet when they should be trying to push the case that they are a FILE sharing program. Not just MP3s or pirated goods. And FORCE the record company to start going after the guilty individual commiting the crime. Right now, their actions are like the FBI shutting down an ENTIRE ISP to take down a guy who collect child porn. It just doesn't happen like that.

    Once again, I ask these people-- are they going to take out Google because the results it displays can potentially contain MP3 sites and warez? Are they ultimately responsible for how the person uses those search results? Didn't think so. Be that as it may, I have no illusions of Kazaa's chances of survival, especially when 90% if not more of it's traffic is violating some sort of copyright or another. It's like a crack house and crack houses get raided. With a case like this, i wouldn't step foot in the US either...

    --
    You need a FREE iPod Nano
  22. common sense by circletimessquare · · Score: 4, Insightful

    if kazaa goes down, another file sharing app will pop up, the next one even harder to kill than napster or kazaa. an arms race no music company can win.

    music companies are an economic distribution model. supply and demand. the internet is an information distribution model. infinite supply, infinite demand. there is no economic model in it, so there is no money in it.

    not all discoveries mean good things for everyone. just ask the aztecs or incans. internet= music nirvana for everyone, a BETTER distribution model for music. it is the death of music companies, who make money pushing cds, an inferior distribution model.

    yawn. big deal. next story.

    where is it written in the bible or the constitution that someone, somewhere, has to make money off music? where is it written?

    i think that before the vinyl recording, people enjoyed music and made music just fine. artists will make music whether they are promised a penny or a billion. the passion for music, to create it, does not depend upon how much money you will make. no one said that somebody standing between the artist and me, the listener, needs to turn a buck. radio will tell me who i might want to listen to, and they will make money promoting concerts and selling ads. artisits will still get known, word of mouth will still spread. you don't need a music company for that.

    you can't kill the internet.

    you can kill a company.

    music companies pumping millions into legal actions is just the death throes of a dying dinosaur.

    good riddance.

    they can scream all they want. they can't fight historical obsolescence.

    "video killed the radio star" 1980

    "internet killed tommy motola" 2000

    scream copyright, scream intellectual property. who gives a shit. none of that beats a worldwide millions strong force of music hungry pimply teenagers with no money to burn and an internet connection.

    the gears of historical forces no one can control are turning.

    death to music.

    long live music.

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
  23. 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.
  24. I Am Not A Lawyer... by tchueh · · Score: 4, Insightful

    and I'm sure some of you are... but I find it interesting how everyone likes to go on about the legalities of this lawsuit as if it's a really idiotic move...

    Like I said, I'm not a lawyer... but I'm pretty sure the good folks at Sharman Networks aren't idiots either... and I'm sure this lawsuit was well thought out...

    Perhaps their motives dig deeper than most of us are looking?

    Just a thought...

    (either way, it'll be interesting to see how this plays out)

  25. 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.

  26. 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.

  27. That's weird. I just downloaded Kazaa: by Elwood+P+Dowd · · Score: 4, Funny

    "Thank you for downloading your personal advertising delivery system! Please follow the onscreen instructions so that we may deliver customized advertising content to your computer. Any use of this software that is not for the purposes of advertising distribution and delivery is strictly prohibited! Infringing use will be prosecuted to the fullest extent of the law! [ed note: that is, not prosecuted at all]

    Have a nice day!"

    --

    There are no trails. There are no trees out here.
  28. Antitrust immunity probably not a defense here by Animats · · Score: 4, Informative
    That antitrust claim probably won't work. For one thing, Napster tried it, and it didn't work for them. It also didn't work in Professional Real Estate Investors vs. Columbia Pictures. That case covered the rental and playing of movie videodiscs in hotels. PREI argued they were just a video rental store, and Columbia argued they were publicly performing the works and thus violating copyright. PREI made an antitrust counterclaim against Columbia, and the issue went to the Supreme Court, which defined clearly when an antitrust claim is invalid. As long as the copyright claim is legitimate, an antitrust counterclaim is inappropriate. "The Court holds today that a person cannot incur antitrust liability merely by bringing a lawsuit, as long as the suit is not "objectively baseless in the sense that no reasonable litigant could realistically expect success on the merits." "- Justice Souter.

    The problem is that copyright confers a monopoly. The RIAA members did get in antitrust trouble over retail price maintenance, but that had to do with illegal marketing practices, involving pressure on retail outlets not to discount. The retail outlets weren't claiming the right to copy the product, just to stick "50% OFF" stickers on it. There was collusion amongst the RIAA members to accomplish this.

    But a copyright claim doesn't require collusion. Any individual copyright holder could ask a court to shut Kazaa down. Price maintenance only works if most of the players conspire to keep prices up. That's the difference.

  29. 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....

    1. Re:Why is Kazaa/Napster illegal? by Ibanez · · Score: 4, Insightful

      Thats the exact same question I've been wondering. Last I checked, the license, in which you have to agree to in order to use their product, forbids its use as an illegal file-trading service. And last I checked, EULA were considered somewhat legal documents. There was a big discussion about this and electronic signatures a year or two ago.

      But then again, look at all the ISP's that are being taken down for things their users do without their knowledge.

      Logically, it seems like it wouldn't be illegal. You can't assume that just because illegal activities occur due to something makes that something itself illegal.

      By that logic, these following scenarios should follow:

      Underage drinkers get into bars illegally. Bars are illegal.

      A program leaves a computer vulnerable by default. That program is illegal.

      Computers, networking services, and the internet provide a means for illegal activities. They are all illegal.

      Ok, so yes, those analogies may not be one hundred percent correct, but you get my drift. Providing a means for illegal activities is not illegal if that is not the original intention.

      Why the hell do you think bongs are legal? Yes, they are supposed to be good for smoking tobacco. But what percentage are actually used for tobacco smoking?

      Blake

      By the way, I am not a lawyer. 95 percent or more of you are not as well. So I may be wrong, and probably am. I'm just speaking from a logical viewpoint. Most of you are probably wrong as well. Slashdot should pay their legal team to tell us what they think.

  30. 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.

  31. SuperBowl XXXVIII? by Cinematique · · Score: 5, Interesting

    On one side, we have the Recording Industry Association of America. On the other side, we have Sharman Networks. Lopsided match, to say the least.

    Maybe it's the American in me... but I hope the underdog wins.

    Somehow, I feel that the future of computing as we know it is going to be decided in large part due to the outcome of this matchup and I for one am tired of waiting for the outcome. I'm tired of the constant rehashing of the legality of file sharing. I'm tired of the false numbers and statistics spun as proof that P2P is the sole culprit for declining music revenue.

    Most of all... I'm tired of the threats of a DRM-enabled world.

    I'm a music fanatic. I love all kinds of music. I used to buy music, but when Napster was taken away from me, I stopped.

    When I pay to see concerts now, at least I take cautious comfort in the idea that the artists see a larger percentage of my twenty dollars. I hope, anyway.

  32. Re:WHAT FREEDOM? by glesga_kiss · · Score: 4, Insightful
    How about the freedom to allow technological progress without it being bastardised by those with a financial interest in the old system?

    Sorry, but I'm not willing to stand for draconian laws banning new and revolutionary communication tools just so a bunch of executives can continue picking up pretty little girls and boys with the intention of packaging them up as a product. How would you feel if the post office went after e-mail just because it cost them money? Were we happy when they proposed taxing e-mail? How is this any different?

    Music is art, not profit.

  33. It won't just stop at Kazaa.... by Anonymous Coward · · Score: 5, Funny

    It has been discovered that Microsoft's "Internet Explorer" is being used to download pirate music from the net.
    And a device called the "Telephone" can be used for lower-quality instant transmission of aforementioned music.
    The creator of the "ear" (client) and the "Voicebox" (server) will also be brought to trial soon, once the Evolution/creation debate is finished, and a defendant can be found.

  34. Yes it does make sense by SerpentMage · · Score: 4, Informative

    This does make sense because in Europe the same thing happened with the car makers. Once a car's warrenty ran out people used to take their car to "non approved" mechanics. The mechanics used "illegal" computers to access the car computer and perform the maintenance necessary.

    The car makers took the "non-approved" mechanics to court to stop them working on the cars. Result, they lost. The EU courts said that choice cannot be innibited by using a lock in. The car makers now has to provide all mechanics with the codes necessary to do maintenance.

    The point of this story is that Kaaza does distribute legal content. However, if Kaaza cannot get access to this content, then copyright holders are abusing the copyright law. Kaaza has no choice, but distribute whatever content they can get their hands on. In effect Kaaza does have an anti-trust and monopoly issue with the big labels.

    This will be a really interesting case to follow.

    --

    "You can't make a race horse of a pig"
    "No," said Samuel, "but you can make very fast pig"
  35. Re:that makes no sense by macdaddy357 · · Score: 4, Insightful

    Comparing file trading to deadly drugs of abuse. Nice straw man.

    --
    How ya like dat?
  36. GUNS by Windcatcher · · Score: 4, Insightful

    If there are any NRA members here, you should take note. If the government can hold Sharman legally responsible for what people trade with their software, how is this in any way different from holding Smith & Wesson, Ruger, et. al. responsible for what people do with the guns they manufacture? As you no doubt know, groups like HCI (Handgun Control, Inc.) have been trying to sue manufacturers for years in this way. If Sharman loses this fight, it can set a very dangerous precedent: that manufacturers are responsible for all uses of their products.