Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Infamous File-Sharing Network Kazaa Settles Record Industry Suit

Sharman Networks agreed Thursday to pay $115 million to settle its legal troubles with the record industry, which sued the company for distributing illegal music files through its Kazaa file-sharing network.

Sharman, which is based in Sydney, Australia, reached the out-of-court settlement with the international IFPI, and the U.S.-based Record Industry Association of America, the two trade organizations said in a joint statement. The agreement settles legal proceedings in Australia and the United States.

The trade groups did not disclose how much Sharman agreed to pay to compensate record companies and put its legal troubles behind it, saying only that it was a "substantial sum." But people familiar with the settlement said Sharman agreed to $115 million.

In addition, Sharman would introduce filtering technologies on Kazaa to prevent music piracy.

"This is the best possible outcome for the music industry and consumers," John Kennedy, chairman and chief executive of the IFPI said in the statement. "Our industry will have a new business partner and consumers will experience new ways of enjoying music online, with more choice. This is a win-win scenario."

  • 1