At that moment, there wasn't a thing called copyright lawsuit via cyberspace until it gets to Napster (another dominant p2p file sharing) first. It was not until February 2004 whereby the ARIA (Australian Record Industry Association) began to take legal action against Kazaa for their massive copyright infringement and online piracy. Then in the following year, Sharman Networks executives and their offices based in Australia were raided under court order.The company was ordered to modify the software within two months (a ruling enforceable only in Australia). Sharman and the other five parties faced paying millions of dollars in damages to the record labels that instigated the legal action.
Nothing is actually in this world. Everything involves money and if online users download musics for free; it means they are stealing from these fellow musicians who has invest their dignity and life into it. Downloading and burning without permission are thieves in the online communities or otherwise known as pirates.
According to ARIA (2008), more illegal copying and internet distribution means less sales, and that means less money for companies to invest in artists and music. This affects a whole community of people: the employee at the retail store that faces closure; the aspiring artist who won't get a deal because record companies have less money to invest in new talent; and the artist whose first album just failed to sell enough to turn a profit.
Music Industry Piracy Investigations (MIPI) Director Mr Stephen Peach said, “Kazaa’s operators have accepted responsibility for their illegal activities and have paid the price for the harm caused to artists and labels. This historic outcome justifies action taken by Australian and international record labels to fight internet music piracy. This very successful result sends a powerful message that copyright infringement will not be tolerated (ARIA, 2006).
According ABC News (2006), Kazaa has agree to compensate copyright holders by settling outside of court worth A130.7 million.
"Kazaa has been a thorn in the side of the music and motion-picture industry for years," Eric Bangeman, a columnist for the technology website Ars Technica, said.
Similar cases this year shows the launched of an online service called RECORDTV which allows Singaporeans to record a free-to-air TV shows aired by Mediacorp for the very first time.
However, MediaCorp threatened to sue the Singapore-based company, claiming the device violates copyright rules. But RecordTV counter-sued the national broadcaster MediaCorp for millions of dollars claiming in its Statement of Claim that MediaCorp's groundless threats had cost the firm about $30.5 million in revenue and research grants. It is asking the court to stop MediaCorp from making any further threats, and is seeking damages (Mirandah.com, 2008).
VeohTV too makes its headlines when a US Judge dismissed a copyright infringement suit by adult entertainment company Io Group against Veoh and granted summary judgment to the defendants. The complaint argued Veoh had not done enough action and regulation towards their online subcribers and user from uploading pornography videos (ABC News, 2008).
References:
ARIA 2006, Australian Recording Industry Announces Historic Global Pay-out from KAZAA, viewed on 11 November 2008, <http://www.mipi.com.au/documents/kazaa27072006.pdf>
ARIA 2008, Internet File Sharing - The Myth Explained, viewed on 11 November 2008,
<http://www.aria.com.au/pages/InternetFileSharing-TheMythsExplained.htm>
Mirandah 2008, Singapore Copyright Infringement Online TV show recording service sued by Broadcasting Company, viewed on 11 November 2008,
<http://www.mirandah.com/Singapore_Copyright_Infringement_Online_TV_show_recording_service_sued_by_Broadcasting_Company.aspx>
ABC News 2006, Kazaa Settles Internet Piracy Lawsuits, viewed on 11 November 2008,
<http://www.abc.net.au/news/stories/2006/07/28/1699109.htm>
ABC News 2008, Judges tosses copyright suit against Veoh, viewed on 11 November 2008,
<http://www.abc.net.au/news/stories/2008/08/29/2349980.htm>
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