Kazaa To Pay $115 Million Settlement to Recording IndustryJuly 27, 2006
It was announced today that a settlement had been reached between Sharman Networks, owner of Kazaa and several companies and organizations representing the music industry in the United Satates. The settlement requires the payment by Kazaa of 115 Million USD and the creation of a new subscription service that filters illegal content.
The announcement made by the IFPI (International Federation of the Phonographic Industry) and the RIAA’s (Recording Industry American Association) was considered ground breaking, bringing to mind Napster’s route to legality a few years back in very similar circumstances. Yet many observers don’t share the industry’s optimism. The fact that many of the files shared through Kazaa were plagued with virus and spyware made the number of users decline heavily in recent months, causing many to migrate to other emerging services such as LimeWire and eDonkey. For these analysts file-sharing tendencies will not be significantly affected by this settlement.