A company that distributes the Kazaa software for sharing Internet files cannot pursue an antitrust suit against major record labels and movie studios, a federal judge ruled.
Sharman Networks was sued last year by entertainment firms who claimed copyright violations because Kazaa allows users to swap music files between their computers. Sharman countersued in February, contending the music labels and studios conspired to keep authorized and copy-protected versions of their songs and movies off Kazaa.
U.S. District Judge Stephen V. Wilson dismissed Sharman’s suit Thursday. Even if the allegations were true, the judge said, Sharman would not be entitled to damages because it distributes file-sharing software and not online entertainment.
Wilson previously ruled that two other file-sharing companies, StreamCast Networks and Grokster, are not to blame for any illegal copying conducted by the services’ users.
That ruling was a major blow for the record labels, but industry representatives praised Thursday’s decision.
