The entertainment industry says it has won a key victory in the battle against illegal file sharing and music piracy. Software developer Sharman Networks has reached an out-of-court settlement over its Kazaa peer-to-peer network. Major recording companies and film studios, who were suing the Australian firm, had accused it of copyright infringement.
They will receive damages of at least 78 million euros. Kazaa says it now plans to follow the example of Napster and become a legal music download service, but it revealed few details on exactly how. The International Federation of the Phonographic Industries blames peer-to-peer internet sites for a fall in CD sales and calculates 20 billion music tracks have been downloaded.
It said the top ten countries for music piracy include Greece, Italy and Spain.