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Kazaa Loses in Australian File-Sharing Case  

First, the decision [rtf].

Bloomberg reports:
An Australian court ruled today that Internet file-sharing operator Kazaa infringed the country's copyright laws and it ordered the company to install filters to prevent future violations.

After an 18-month trial, the Federal Court of Australia ruled that Kazaa violated Australian copyright law by authorizing users to infringe music companies' copyright in recordings.
Financial Times writes:
The ruling ordered Sharman Networks to filter out copyrighted material from its Kazaa Media Desktop software within months or face closure. . . .

In his judgement Murray Wilcox, Australian federal court judge, said: "Both the user who makes the file available and the user who downloads a copy infringes the owner's copyright."
Silicon Valley Media Law Blog summarizes the key facts that the court relied on to support its conclusion.

[Content removed on Sept. 8, 20005.]

In a post well worth a full read, Weatherall's Law compares Kazaa to Grokster:
In Grokster, the US Supreme Court had to decide whether the 9th Circuit was right to uphold a trial judge's decision granting summary judgment to Grokster and other P2P software providers. . . .

Unlike Grokster, however, Kazaa is a judgment after a full trial. [Kazaa] is a final judgment on liability - subject to any appeal (to the Full Federal Court, or, following that, to the High Court).
And finally, Michael Geist weighs in with the Canadian perspective:
From a Canadian perspective, the case highlights a growing divergence between Canadian and Australian copyright law such that the outcome of a similar case in Canada could potentially be much different . . . .

[U]nder Canadian law, Kazaa would be entitled to presume that its services are being used lawfully consistent with its legal terms. Could the music industry rebut the presumption against a Canadian Kazaa? Hard to say.
Prior posts:
    Sept. 4, 2005 - Australian Judge to Rule in Kazaa Case Tomorrow.
    Apr. 24, 2005 - File Sharers' Parents Plan to Sue Kazaa.
    Mar. 22, 2005 - Final Arguments Begin in Kazaa Lawsuit.
    Mar. 7, 2005 - Kazaa's Assets Frozen in Australia.
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