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Kazaa Ordered to Stop Piracy. 2005-09-07, HostMan.biz An Australian federal judge ruled this week that the makers of the popular peer-to-peer file sharing software Kazaa must alter the tool to prevent it from being used in music piracy. The ruling, well received by the recording industry, will have an impact outside of Australia, where Kazaa is based, because the product is used around the world. Similar to the US Supreme Court ruling that the movie and music industries can sue technology companies that encourage the theft of movies and music over the Internet, the Australian Judge determined that Kazaa's owners and distributors took no action to limit illegal file sharing, despite warnings posted on the company's Web site asking that Kazaa users not swap copyrighted material. Judge Murray Wilcox said it had been in the financial interest of the owners to maximize the file-sharing taking place using the tool. The judge found six of the 10 defendents guilty, ordering them to pay 90 percent of the recording industry's costs in the case. Damages will be established at a later hearing. Main Kazaa owner Sharman Networks said it would appeal the ruling. The company says it continues to distribute the software, reporting more than 800,000 downloads last week and 390 million since the product's launch in 2001. The ruling said that Kazaaa will have to be altered to ensure new versions of the software filter unlicensed copyrighted material, an extremely difficult charge.

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