LimeWire Countersuit Against Record Companies

September 26th, 2006 |
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LOS ANGELES, September 26, (PodTech News) — The gloves are off for LimeWire in its dealings with the major record companies. The company on Monday filed suit in U.S. District Court for the Southern District of New York, charging 13 record companies with anti-competitive behavior. The suit follows a a claim against LimeWire by the same 13 record companies, accusing the developer of piracy and demanding damages totaling nearly half a billion dollars. PodTech’s Matt Kelly spoke with Joe Fleischer of BigChampagne, an online media measuring and research firm, about the peer-to-peer landscape.

Reporter’s Notes: The LimeWire lawsuit charges the record companies with colluding to create a monopoly over the digital distribution of copyrighted music and price their licensing rates so that independent music sellers can’t afford to stay in business. LimeWire also alleges the record companies encouraged Lime Wire to use their preferred supplier for a P-to-P filtering system, iMesh and alleges the supplier is controlled by the record companies. A top iMesh executive is a former leader of the RIAA and iMesh is the only RIAA-sanctioned business of its kind in the U.S. In Augustof 2006, iMesh released BearShare 6.0 after acquiring the company’s assets after it’s creators Free Peers, Inc., agreed to pay a $30 million settlement with the RIAA in May of 2006. A spokesperson for LimeWire refused to comment for this story.

— Matt Kelly

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