The file sharing network has been locked in battle with the
Recording Industry Association of America (RIAA) and the UK's
International Federation of the Phonographic Industry (IFPI) for a
number of years. The agreement settles all the outstanding Kazaa
suits with the industry.
"This is the best possible outcome for the music industry," said
John Kennedy, the chief executive of the IFPI. "Consumers will
experience new ways of enjoying music online, with more choice.
This is a win-win scenario."
The deal settles cases in the US and in Australia. An Australian
court last year ruled that Kazaa, and others, were guilty of
authorising copyright infringement. Kazaa owner Sharman Networks,
has argued in the past that it was not responsible for its users'
copyright infringements.
“This is welcome news for the music community and the legal
online music marketplace," said RIAA chief executive Mitch Bainwol.
"The winners are fans, artists and labels and everyone else
involved in making music, and our partners in the technology
community."
Though the case is a landmark victory for the industry, some
observers say that it is of more symbolic than practical value.
"It's nowhere near as popular as it used to be," Ovum analyst
Jonathan Arber told Reuters. "Very few people are thought to be
using it anymore because better services came out. In terms of
actually reducing piracy, people migrated to other file-sharing
networks a long time ago."
The IFPI released a report which detailed the continuing extent
of music piracy. It said that its research showed that one in three
CDs sold is an unauthorised copy, amounting to a $4.5 billion a
year industry.
It also published a list of 10 countries which it said needed to
improve their copyright enforcement practices. Three of the
countries were in Europe: Spain, Italy and Greece.
"Italy is one of the biggest sources of piracy in Western
Europe," said its report. "Organised crime networks are playing an
ever-increasing role in the black market trade in music. The
government’s recent anti-piracy laws and increased police action
may help, but the problem is so big it will need a concerted and
continuing campaign to have any effect."
Greece's piracy rate runs at 50%, it claims, while Spain's is an
"unacceptably high" 22%.
"It is not a pleasurable task compiling statistic after
statistic of doom and gloom for an industry that gives so many so
much pleasure," said IFPI chief executive Kennedy in his
introduction to the report. "Occasionally we have to remind
everyone that we are an industry – one that provides enjoyment,
employment, creativity and innovation."
"The settlement with Kazaa, reported as this publication goes to
press, shows we should never give up the battle," he said.
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