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-------------------------------------------------------------- This story was printed from ZDNet Australia. --------------------------------------------------------------
Kazaa case a 'fool's errand'

By Jeanne-Vida Douglas, ZDNet Australia
January 29, 2003
URL: http://www.zdnet.com.au/news/business/soa/Kazaa-case-a-fool-s-errand-/0,139023166,120271597,00.htm


US-based legal counsel for owners and developers of peer-to-peer (P2P) Kazaa software, Sharman Networks, are warning plaintiffs representing copyright holders such as Metro-Goldwyn-Mayer studios that their claims may be in vain, given the vagaries of international copyright law.

Predicting that the Californian-based case taken out against P2P software providers, such as Sharman Networks and Grotsker, would take up to 18 months to resolve, Roderick Dorman, legal counsel for Sharman Networks said the plaintiffs would subsequently have to argue their case in Australian courts before being able to take action against the defendants.

"Before a US judgement can be enforced against any company in Australia -- the plaintiffs have to establish whether or not the US-courts have any jurisdiction in Australia," Dorman said. "In many respects this lawsuit represents a fool's errand."

Dorman also went on to point out that the enforceability of any trial outcome would be further hampered by the decentralised nature of the Kazaa P2P software.

"The fundamental problem that the plaintiffs face is enforceability in a number of respects," Dorman said. "Because the architecture of the software is decentralised, an injunction requiring Sharman to act--or refrain from acting--will have no affect on existing users. The software will continue to be usable even if Sharman is forced to shut down its Web site."

Dorman in association with David Casselman are representing Sharman Networks in a counterclaim against copyright owners, which may see any claim to their copyright invalidated across a range of media. However, both claim the P2P distributor remains willing to work with copyright holders should the plaintiffs be willing to "come to the negotiating table".

"Sharman was not formed with the intent to allow or promote any copyright infringement and have no means of stopping any such infringement without the cooperation of copyright holders," Dorman said. "The entertainment industry's decision to refuse to work with Sharman prevents the company from protecting their copyright, and that is the basis for the counterclaim."

Despite the legal quagmire, Dorman said Sharman remained committed to providing a business solution for the distribution of media files via the Internet.

"Copyright material can be distributed on the Internet in such a way that copyright holders can be reimbursed," Dorman said. "Sharman is always willing to talk the moment the industry decides to work with them."


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