September 26, 2006 10:54 AM PDT

Lime Wire, squeezed, files countersuit

One of the last remaining peer-to-peer havens is fighting to stay alive.

Lime Wire, which was hit with a lawsuit in August by Warner Bros. Records, Virgin Records America, Sony BMG Music Entertainment and other music labels, filed a counterclaim in U.S. District Court in New York on Monday. The software company alleges in court filings that the record companies have engaged in unfair business practices to scare away its users.

Lime Wire develops peer-to-peer technology, which is often used by individuals to create copies of music and distribute it over the Internet. More than a dozen record companies have joined in the lawsuit against Lime Wire, alleging that its technology provides a means for copyright infringement.

In its countersuit, Lime Wire states that the record labels launched their own digital-distribution Web sites and alleges that the labels joined forces to be the sole recipients of any financial benefit.

"Their goal was simple: to destroy any online music distribution service they did not own or control, or force such services to do business with them on exclusive and/or other anticompetitive terms," the countersuit says.

Lime Wire's suit also argues that the record companies combined and conspired to restrain trading in the market for online distribution of recorded music and, as a result, violated sections of the Sherman Act and the Clayton Act.

The Recording Industry Association of America (RIAA), which has lead the legal battle against peer-to-peer companies on behalf of the music labels, maintains that Lime Wire's business is based on copyright infringement.

"While most commercial illicit P2P networks have ultimately abided by the Supreme Court's unanimous decision, Lime Wire is a conspicuous holdout," an RIAA representative said. "A kitchen sink of frivolous charges doesn't change the law, the Supreme Court's ruling or the fact that Lime Wire has built a business based on theft and continues to profit from it."

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6 comments

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riaa.
RIAA. eff that.
Posted by romeSDS (1 comment )
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go LimeWire!
Sock it to those real criminals - the RIAA!

I doubt if this tactic will work, but I support it nonetheless.
Someone has to put a stop to these mafia criminals before more
old ladies and children get dragged into court on trumped up
"piracy" charges.
Posted by Dalkorian (3000 comments )
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Right on
Good for Limewire, keep p2p alive.
Posted by camkun (2 comments )
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FTP is P2P and has been legal for years.
It's not the technology, its the use.

If i want to send a file to a friend, FTP is safe, secure (in its ssl incarnations,) and freely available everywhere.

You just never think of FTP for illegal music, because it was never advertised like that.
Posted by disco-legend-zeke (448 comments )
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Interesting
Very interesting defense via RICO laws, but then again, with this line of defense looks like RIAA, may be forced to explain whatever happened to the one hundred million plus raised in the file sharers law suit settlements!

Still, given RIAA's pull at 1600 Pennsylvania Ave DC, I wouldn't be surprised, they slither away! , and pay bribes for changes in the law, to outlaw this form of defense, by allowing only State and Federal Attorney Generals, to enforce the RICO laws!

The RIAA, has very deep legal pockets indeed, given their leech like activities on all forms of entertainment of today, and that which will be!, in the future!
Posted by heystoopid (691 comments )
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What is Limewire?
What you are still using that client? Maaahahaha.
Posted by zeroplane (286 comments )
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