Sharman Networks Ltd., the makers of the Internet file sharing application Kazaa, settled a lawsuit on Thursday that accused it of allowing music and other copyright protected files to be transfered through its service without authorization. According to Forbes, the company agreed to pay more than US$115 million in penalties to music and movie companies, and to modify Kazaa to help block the illegal trading of files.
Sharman Networks says it will “use all reasonable means” to discourage online piracy.
The company came under fire when PC users began using the software to trade copy protected music and movies. There are several Kazaa-compatible applications for the Mac, but Sharman Networks is not involved in their development.
Sharman Networks is now working to strike deals with movie studios and recording labels so that it can legally distribute songs and films.
Dan Glickman, head of the Motion Picture Association of America, said the settlement was an important victory in a historic legal case.
EMI Music vice chairman, David Munns, said “While the award may seem like a vast pot of money, it will merely offset the millions we have invested – and will continue to invest – in fighting illegal pirate operations around the world.”