The Recording Industry Association of America (RIAA) has sued Sharman Networks Ltd. (Sharman), for contributory copyright infringement for distributing its popular Kazaa file exchange software. This case presents two unique aspects which were not present in the Napster case. First, KaZaa does not control users through a central registry of all files on all computers, a fact which could provide Sharman with a defense to the U.S. action and distinguish it from Napster and other such cases. Second, Sharman, incorporated in the South Pacific Republic of Vanuatu and managed in Australia, has no assets or significant business dealings in the United States. Even if the RIAA wins in court, it would encounter difficulty enforcing any judgment in that it would be difficult if at all possible to locate either the source code for the program or the principals of Sharman. For a concise history of the main points of the dispute between the RIAA and companies such as Kazza, visit: http://www.nytimes.com/2002/10/07/technology/07SWAP.html (registration required)

E-TIPS® ISSUE

02 10 10

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