Australian Federal Court Rules Kazaa Infringes Copyright

On September 5, 2005, Australian Federal Court Judge Murray Wilcox ruled that Kazaa's popular file-sharing service violated Australia's copyright law by authorizing users to infringe music companies' copyright in sound recordings. The judgment does not go so far as to make file-swapping illegal. It does, however, conclude that Sharman Networks Ltd, and five other respondents associated with the Kazaa software, violated section 101 of the Australian Copyright Act. Under this section, copyright is infringed when a person who does not own the copyright and who does not have a licence from the copyright owner, authorizes another person to do an infringing act. The judge found that the warnings on Kazaa's website urging users not to exchange copyright materials were not enough to discourage illegal file sharing. The six respondents found to have authorized the infringement were ordered to pay 90 per cent of the record industry's costs in the case. They have been given two months to modify the software to include a filter so that only licensed music can be accessed. A hearing will be held at a later date to determine damages. The Australian decision, which comes only 10 weeks after the unanimous US Supreme Court ruled that file-sharing operators could be held liable if they actively induce copyright infringement by file sharers (E-TIPS newsletter – Vol 4, No 1, July 6, 2005), will have global implications because the users of Kazaa are worldwide. The Canadian Recording Industry Association (CRIA), representing more than 90% of all records produced and sold in Canada, applauded the decision, calling it one of the most significant court actions against internet piracy since the shutdown of the original Napster. Sharman says that it will appeal the ruling. For the text and a summary (written by Judge Murray Wilcox) of the decision, see: www.austlii.edu.au/au/cases/cth/federal_ct/2005/1242.html (Universal Music Australia Pty Ltd v Sharman License Holdings Ltd [2005] FCA 1242.) For related news stories, see: www.cbc.ca/story/canada/national/2005/09/05/CRIA_reax20050905.html; or http://makeashorterlink.com/?T172218CB For the press release issued by the Canadian Recording Industry, see: www.cria.ca/news.php Summary by: Clare McCurley