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Lime Wire: Labels hurt by mismanagement, not piracy

NEW YORK--Edgar Bronfman Jr., CEO of Warner Music Group and heir to a huge beverage fortune, received more than $17 million in total compensation for the year 2008, even as he and his managers were laying off hundreds of employees and claiming that online piracy was to blame for much of the music industry's financial woes.

This was one of the facts that a jury was shown in federal court here today, as lawyers for Mark Gorton, the man behind the LimeWire file-sharing system, attempted to show that the file-sharing service he founded was not solely to blame for declining music sales and the industry's shrinking number of jobs. Joseph Baio, Gorton's lawyer, tried to influence the jury by painting a picture of record labels led by fat cat executives who in some cases paid themselves huge sums and were too slow to react to major technological shifts in their industry. Some of the trouble, Baio suggested, was caused by the record companies' own poor stewardship.

As a result of a lawsuit filed by the Recording Industry Association of America in 2006, U.S. District Judge Kimba Wood found Gorton and Lime Wire, the company behind the popular file-sharing service of the same name, liable last year for willful copyright infringement. A jury is now deciding how much Gorton will pay in damages. The amount could be as high as $1.4 billion.

In an attempt to convince the jury that Gorton deserves to pay a huge financial penalty, RIAA lawyers have tried to prove that Gorton and his service--which was used to obtain songs without paying for them--cost the music industry billions in revenues as well as thousands of jobs. … Read more

Lime Wire founder on copyright law: 'I was wrong'

NEW YORK--Lawyers representing the four largest music labels tried to convey a message in court here today: Lime Wire founder Mark Gorton was so determined to help people pirate songs that he disregarded copyright law, artists' rights, and even the Supreme Court.

And eventually, Gorton conceded.

The best that he could offer for an excuse was that he misread the law. "I was wrong," Gorton told the court. "I didn't think our behavior was inducing [copyright infringement]. I understand that a court has found otherwise."

In numerous exchanges with Glenn Pomerantz, the labels' lead attorney, … Read more

Lime Wire strikes back in court against RIAA

NEW YORK--Free music is here to stay and punishing Lime Wire founder Mark Gorton for that fact is unjust and won't change a thing, Gorton's lawyers said in court today.

A trial to determine the amount of damages Gorton must pay the top four record companies for infringing their copyrights got under way in a Manhattan federal courtroom. Gorton has a possible $1 billion judgment hanging over his head after the major music labels accused him in a 2006 copyright suit of encouraging music fans to use his company's LimeWire software to illegally swap music files.

Lime … Read more

Lime Wire's day of reckoning is here

Mark Gorton and Lime Wire pocketed millions by enabling people to obtain songs online without paying for them. Now, Gorton and his company could end up paying damages of over $1 billion.

In a New York federal court this week, the four largest record companies will try to prove that it was Gorton's own greed that drove him to continue operating Lime Wire, the company behind the highly popular file-sharing service LimeWire, though they warned him years ago to stop and fellow peer-to-peer operators advised him to cut a deal. Gorton continued to defy the top labels even after … Read more

The 404 765: Where we dare you to give us a mature rating (podcast)

Our guest on today's episode of The 404 Podcast is Russ Frushtick, the games and tech editor for MTV Multiplayer, but the ESRB has assigned him an AO rating for Adults Only, so he won't be visiting Australia anytime soon. Similarly, Australia also refuses to welcome the latest Mortal Kombat game due to excessive violence.

The real story, however, is Australia's outdated rules for video game classification that currently only accommodate a maximum MA15+ rating, so video games that surpass these limitations are automatically banned in the country.

Since Australian adults still have access to mature media in its other myriad forms, it doesn't make sense that local gamers can't also enjoy video games with similarly "explicit" content.

And speaking of risque video games, a U.K.-only Nintendo Wii title is promising "flirty fun for all" with its latest adult-friendly release, called We Dare. The trailer for We Dare illustrates gameplay in the form of four consenting adults using the Wii remote to control virtual versions of party games like Spin The Bottle, Kiss Under the Mistletoe, and the ever-popular Take Off Your Clothes.

The We Dare trailer is a perfect example of vendors using viral marketing to hype up the release of video games that may not be as fun as the videos suggest.

The Dead Island trailer is making similar waves for two reasons: because of its graphic nature that makes sensitive babies like Wilson and me squirm, but also because it doesn't show footage of actual gameplay in Dead Island.

Game previews often show cut scenes or, worse, videos exclusively created for the trailers, which leaves plenty of gamers feeling cheated when the gameplay doesn't even come close… Read more

Little juice left in Lime Wire

The long saga of the Lime Wire company appears to be close to an ending.

The maker of the popular LimeWire file-sharing software--a peer-to-peer setup along the lines of the original Napster--has announced that at the beginning of next year, it will cease business, as originally reported by Peter Kafka at All Things Digital.

Owing to a copyright complaint filed against it in 2006 by the Recording Industry Association of America, Lime Wire had already been ordered in October of this year to shut down its peer-to-peer service. But, following Napster's example, it had previously opened a legitimate online music subscription service, … Read more

Jammie Thomas hit with $1.5 million verdict

Jammie Thomas-Rasset, the Minnesota woman who has been fighting the recording industry over 24 songs she illegally downloaded and shared online four years ago, has lost another round in court.

A jury in Minneapolis decided today that she was liable for $1.5 million in copyright infringement damages to Capitol Records, or $62,500 for each song she illegally shared in April 2006.

The Recording Industry Association of America--the trade group that represents the four major music labels--applauded the verdict.

"We are again thankful to the jury for its service in this matter and that they recognized the severity … Read more

How to embarrass someone with an iPad

Links from Wednesday's episode of Loaded:

Barnes and Noble announces the new touch-screen Nook Color

T-Mobile customers will be able to use their phones to tether the Net to other devices starting November 3

The white iPhone 4 is delayed until the spring

You can get free laser engraving on the iPad

MySpace gets a much-needed makeover

Yahoo Mail also gets a makeover--with social networking to Facebook and Twitter

LimeWire is ordered to shut down all sharing features, leaving only the music store up and running

The Sony Walkman apparently is not dead in the U.S. The cassette … Read more

DDoS attack hits U.K. record label and law firm

Denial of service attacks launched by the group Anonymous took down the Web sites of U.K. record label Ministry of Sound and its legal firm Gallant Macmillian on Sunday.

The Anonymous group targeted the two sites as part of its battle against organizations that it believes are using strong-arm tactics to deal with those who share files on the Internet. The Ministry of Sound specifically hired Gallant Macmillian to identify and sue individuals who allegedly uploaded songs from its music catalog, according to The Register. Macmillian has reportedly sent out letters to those suspected of illegal file sharing.

As … Read more

4chan takes down RIAA, MPAA sites

Members of image board and Internet forum 4chan over the weekend launched a series of DDoS attacks against Web sites for the two biggest media trade groups.

Accused in the past of drumming up raids against Twitter, YouTube, and other popular sites, users at 4chan urged fellow members to carry out DDoS (distributed denial-of-service) attacks against the Motion Picture Association of America (MPAA) and the Recording Industry Association of America (RIAA) late last week, taking both offline on Saturday.

The actions by 4chan users were launched in retaliation against similar DDoS attacks aimed at The Pirate Bay and other file-sharing … Read more