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Piratebay raid disrupted legitimate business, say lawyers

OUT-LAW News, 19/06/2006

A massive police raid on a Swedish website accused of giving access to pirated movies and music disrupted the business of innocent companies sharing the same web hosts, according to a lawsuit which seeks compensation.

The raid was carried out on 31st May on several web hosting premises. It was intended to take offline and confiscate web equipment belonging to Piratebay.org.

The not-for-profit Centrum för rättvisa (Centre for Justice) claims that the police took 200 servers from hosting company PRQ, including many belonging to companies not connected to Piratebay. It will seek damages on their behalf from the Chancellor of Justice ranging from $1,400 to $27,000 on behalf of 10 companies.

"These are small IT companies with one or a few employees," a lawyer for the Centrum, Clarence Crafoord, told Sweden's Expressen newspaper. "Being shut down for a week could mean bankruptcy for them." Nobody at the Centrum was available for comment at time of going to press.

It is the second potential damages claim arising from the raid. OUT-LAW reported that the operators of Piratebay.org themselves will seek compensation if they can prove that the site is not illegal. In a statement at the time they said they "can receive compensation from the Swedish state [if] the upcoming legal processes show that [Piratebay] is indeed legal."

The site operators claim that it is legal because it only posts links to material. Though Swedish copyright law is less strict than in other countries, that argument is unlikely to work, Swedish lawyers have warned.

It has also emerged that the US put pressure on the Swedish Ministry of Justice to raid the site. The Washington Post reports that officials from the US Department of Commerce, the State Department and the US trade representative's office met with officials from the Swedish Ministry of Justice just weeks before the raid. They told the Swedes that Pirate Bay was one of the world's largest sources of unauthorised music and films, the Post reported.

See also: Piratebay operators hope to win compensation, OUT-LAW News, 02/06/2006

 

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