Major Labels Lodge Lawsuit Against LimeWireAugust 11, 2006
Major labels have just initiated legal proceedings against high-flying LimeWire, a move that follows a recent settlement with Kazaa owner Sharman Networks. The LimeWire suit, filed Friday in the United States District Court in Manhattan, seeks damages of $150,000 per infringing file. The action was spearheaded by the RIAA, which indicated that negotiations involving the leading P2P had failed. Specifically, the talks focused on a termination of the current service, followed by a re-launch involving a filtered, industry-approved application. The RIAA now has considerable tailwind thanks to its massive, $100 million Kazaa settlement agreement, though one insider pointed a potentially difficult battle ahead. According to the source, who is not affiliated with either side, LimeWire is less vulnerable to charges that its application knowingly infringes on major label copyrights, though the court proceeding will unearth relevant documents related to the matter. Additionally, the LimeWire application itself warns users not to swap copyrighted files, though most are doing just that. In the case, the RIAA is certain to pursue LimeWire based on precedent established in MGM v. Grokster, which broadened infringement responsibility to companies that knowingly encourage and profit from the illegal trading of copyrighted files. LimeWire is controlled by Lime Group LLC.