NY Times, Oct. 7, 2002

Music Industry in Global Fight on Web Copies
By AMY HARMON

Having vanquished the music swapping service Napster in court, the 
entertainment industry is facing a formidable obstacle in pursuing its 
major successor, KaZaA: geography.

Sharman Networks, the distributor of the program, is incorporated in the 
South Pacific island nation of Vanuatu and managed from Australia. Its 
computer servers are in Denmark and the source code for its software was 
last seen in Estonia.

KaZaA's original developers, who still control the underlying technology, 
are thought to be living in the Netherlands � although entertainment 
lawyers seeking to have them charged with violating United States copyright 
law have been unable to find them.

What KaZaA has in the United States are users � millions of them � 
downloading copyrighted music, television shows and movies 24 hours a day.

How effective are United States laws against a company that enters the 
country only virtually? The answer is about to unfold in a Los Angeles 
courtroom.

A group of recording and motion picture companies has asked a federal judge 
to find the custodians of KaZaA liable for contributing to copyright 
infringement and financially benefiting from it. If the group wins, it 
plans to demand an immediate injunction. Sharman would then have to stop 
distributing KaZaA or alter the program to block copyrighted material, 
which it says is not possible because of how its technology works.

Sharman asked the court last week to dismiss the case, asserting that 
because the company has no assets or significant business dealings in the 
United States, the court has no jurisdiction over it. Moreover, the company 
said, because the Internet does not recognize territorial boundaries, 
anything Sharman does with KaZaA at the behest of a judge in Los Angeles 
would affect 60 million users in over 150 countries. Arguments are 
scheduled for Nov. 18.

full: http://www.nytimes.com/2002/10/07/technology/07SWAP.html


Louis Proyect
www.marxmail.org

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