Kazaa, an Australia-based peer-to-peer Web site that managed to elude the legal reach of the music recording industry for many years, has agreed to an out-of-court settlement of US$100 million. Owner Sharman Networks also agreed to prohibit illegal file sharing on the Kazaa network going forward. In theory, at least, the agreement paves the way for Kazaa — once the most famous P2P outlaw of them all — to go legit. However, the site faces more than a few hurdles before it will be able to actually set up shop with a profitable business model.
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Kazaa Settles With Record Labels, May Go Legit
Posted by: Erika Morphy July 27, 2006 02:45 PMKazaa, an Australia-based peer-to-peer Web site that managed to elude the legal reach of the music recording industry for many years, has agreed to an out-of-court settlement of US$100 million. Owner Sharman Networks also agreed to prohibit illegal file sharing on the Kazaa network going forward. In theory, at least, the agreement paves the way for Kazaa — once the most famous P2P outlaw of them all — to go legit. However, the site faces more than a few hurdles before it will be able to actually set up shop with a profitable business model.