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The Courts Government News

Judge Rules that Kazaa can be Sued 467

scubacuda writes "According to this News.com article, U.S. District Judge Stephen Wilson said a lawsuit against Sharman Networks (the makers of Kazaa) could proceed, since Kazaa software had been downloaded and used by millions of Californians. (The Australia-/Vanuatu-based company had filed a motion to dismiss the lawsuit, arguing it was not bound by U.S. laws since it did not have substantial contacts with California.)"
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Judge Rules that Kazaa can be Sued

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  • Future headlines (Score:4, Insightful)

    by Anonymous Coward on Saturday January 11, 2003 @12:55PM (#5062407)
    Judge issues injuction against Kazaa

    Judge declares Kazaa violated the law
    Kazaa out of business
    Company X buying Kazaa's assests
    Ask Slashdot: Whatever happened to Company X?
    • by csnydermvpsoft ( 596111 ) on Saturday January 11, 2003 @03:07PM (#5063022)
      Actually, more like:

      Judge issues injuction against Kazaa
      Injunction issued against Kazaa
      Judge declares Kazaa violated the law
      Kazaa guilty
      Kazaa out of business
      Kazaa filing for bankruptcy
      Company X buying Kazaa's assests
      Company X steps forward, buys Kazaa's assets
      Ask Slashdot: Whatever happened to Company X?
      Ask Slashdot: Where did Company X go?
  • Wow (Score:3, Insightful)

    by Anonymous Coward on Saturday January 11, 2003 @12:55PM (#5062408)
    Wow, first one maybe?

    Seriously, they are not a U.S. company...the ego of this country thinking it can impose its laws on non-citizens!
    • Re:Wow (Score:3, Insightful)

      Seriously, they are not a U.S. company...the ego of this country thinking it can impose its laws on non-citizens!


      This is how it has always been, for all countries. If you help citizens of country X violate country X's laws, you can expect to get sued or tried in country X under country X's laws.


      What happens next depends on how you respond. There are three things you can do.


      1. Go to country X, concede jurisdiction, and abide by the court's decision.


      2. Go to country X and argue that country X's laws should not apply.


      3. Ignore country X. You'll lose by default in country X. What then happens depends on your country.


      The winner will come to your country to try to enforce the judgement. Your countries laws will then decide if the country X had jurisdiction. If your country decides that X did have jurisdiction, your country enforces the judgement.


      The only complication that the internet introduces is that it makes it hard to tell where people you are dealing with are located. Before the internet, generally transactions that might be illegal involved mailing or shipping something, and it was reasonably easy to simply refuse to mail or ship to people in countries where your product might be illegal.

  • Great... (Score:5, Insightful)

    by diamond0 ( 456988 ) on Saturday January 11, 2003 @12:56PM (#5062412)
    So now a presence on the Internet, and contact with the world, means that I'm potentially liable for expenses related to travelling anywhere in the world (in this case California) in regards to legal action?

    Swell, I guess I better shut off my web server.

    • Re:Great... (Score:5, Insightful)

      by mccalli ( 323026 ) on Saturday January 11, 2003 @01:46PM (#5062666) Homepage
      Just don't turn up. After all, if I receive a letter from Uzbekistan telling me I'm due in their courts (I'm British), there's no reason I have to accept their judgement.

      California doesn't rule Australia. There's no reason an Australian has any need whatsoever to listen to what a Californian judge says. He says you should turn up? Fine. Ignore him.

      Cheers,
      Ian

      • Re:Great... (Score:5, Interesting)

        by giel ( 554962 ) on Saturday January 11, 2003 @02:01PM (#5062727) Journal

        Uhm, uhm. Americans have proven before they can act very strange and explicit of it comes down to things they believe are a threat to their country or society. Like:
        ' Ah, you don't want to help us smoke the criminals out of their holes? '
        ' Fine, we have reasons to believe you hide terrorists en produces nuclear weapons! '
        and:
        ' No sir, you can't do that, I'm an American citizen. ' in foreign countries

        OK, I know not all Americans are narrow minded chauvinistic egoists.

      • Re:Great... (Score:3, Informative)

        by BlueWonder ( 130989 )
        Just don't turn up. After all, if I receive a letter from Uzbekistan telling me I'm due in their courts (I'm British), there's no reason I have to accept their judgement.

        If the Hague treaty [gnu.org] becomes ratified, the UK would be required to enforce a Uzbekistan court rule against you.

      • Re:Great... (Score:3, Interesting)

        by sql*kitten ( 1359 )
        Just don't turn up. After all, if I receive a letter from Uzbekistan telling me I'm due in their courts (I'm British), there's no reason I have to accept their judgement.

        That's charmingly naive, and maybe it was true once. But these days, as recent events [bbc.co.uk] illustrated, countries don't bother to protect their citizens very much at all from foreign governments. I fully expect that if another country wanted you extradited, the British police will fall over themselves to help. And if you're over there when you are arrested, they won't lift a finger to help you.
    • Re:Great... (Score:5, Insightful)

      by giel ( 554962 ) on Saturday January 11, 2003 @01:50PM (#5062692) Journal

      Yeah, and manufacturers of CD-R's, harddrives and MP3 players should be dragged in court too.

      It's the people who use Kazaa to share copyrighted stuff that break the law. Not the people who provide Kazaa. We don't put Ford into jail because people violate laws using cars. We don't put states into jail because people violate laws on the road.

      What are the costs of an illegal copy? A few cents. Let's double that, so we get a 50% cost, 50% gain balance. And now explain to me why a CD in a shop costs about $20? (in the Netherlands)

      The media industry and the public have to change their minds and accept we do have internet, and we can copy ourselves for very low prices and that is not something one can sell or someone is willing to pay for anymore...

      • by t0qer ( 230538 ) on Saturday January 11, 2003 @05:18PM (#5063557) Homepage Journal
        At the bottom of my sig, you'll see the mag I donate my webmastering skills too. We're a local zine for the silicon valley music scene.

        Before ppl ask "SV has a music scene?" remember, bands like green day come out of here. Our music scene is totally different than that of L.A.'s a.k.a. Hollywood. I can't describe it, because I see everything as data, but I can tell you what the musicians are fearing.

        So yesterday, i'm riding around delivering the latest issue of Zero with one of our big bosses. Boss delivering zines you ask? It's hard times, everyone is pulling double effort.

        Anyways, this cat is a musician, and .5 owner of the zine. When we went to the different bay area wherehouse music stores today, we found out some alarming news.

        All Wherehouse music stores around our area are shutting down... We have noticed a trend too, less people in other music stores.

        So who's to blame? Napster? The economy? Pirates?

        Well, my partner started asking questions about the technology. He's what I would call a reforming luddite (yeah strong words but he'd agree with me) "Isn't there some way they could make a CD so it's uncopyable?" he asked. I explained to him as long as there was some sort of digital, to a speaker coil coversion, the RIAA will never be able to stamp out piracy.

        "Well who the fuck would want to download a shitty copy of a song then!" he chirped.

        "The same fucks that would bring a camera into AOTC's, compress it to mpeg and share it over kazaa" I replied.

        Stumped, he went back to his first question. After repeating that there had to be some way of doing it 3 times I answered..

        "Yeah, if they could convince everyone to replace their ears with DRM enabled digital implants, then yeah the RIAA has a chance"

        Well, he got the point after that. So he moved onto "How do you stamp out P2P?"

        I put it into another analogy for him. Napster with it's central peer topology is much like a football team with 1 quarterback. You sack the quarterback.. You sack the network.

        "So the RIAA can just sack kazaa right?"

        "No, Kazaa would be the equivelent of every player on the team being both QB and reciever"

        See, our zine stays alive by record lables having the money to buy adspace from us. If the record lables are losing money from P2P it affects us because they've yet to evolve to the net.

        "What should they do?"

        Personally, I think the record lables should ditch CD production altogether now. They should make songs freely downloadable. Fuck it, cut their losses.

        But rather than look at it like a loss, the record industry should take a Las Vegas approach to it. Just use the music as a "comp" to milk money out of people in other ways.

        For instance, that $50 dollar green day ticket, fuck it, if people won't buy the albums anymore, double it. I think people wouldn't care if they had to pay more for live performances. I'm biased because I do get in for free, and don't have any money to pay for tickets anyways. I'm 30 years old in feburary and am perfectly content to staying at home.

        The market is really for 14-25 year olds. Those are the people with expendable cash. They live at home, don't have a mortgage, and can afford $100 bucks to see a live performance. With the rate of inflation over the last 10 years, $100 doesn't really seem like a lot to me to see a big headliner band if I had no financial obligations.

        I'm the oldest of 6, my youngest siblings are more at home in the computer enviroment than I ever was at their age. The RIAA doesn't realize this yet, but their biggest age group has a huge understanding of internet distribution, and they will never be able to beat it. That's just an unfortunate fact about it.

        So to recap the RIAA should...

        Cut back CD production,
        Raise the price of live performances
        Focus on promotion more than CD distribution.

      • Re:Great... (Score:3, Insightful)

        by KalvinB ( 205500 )
        "And now explain to me why a CD in a shop costs about $20?"

        Because you're paying an amount for the content and those who produced it as well.

        This may come as a shock to you but you never just pay production costs for anything. A 20oz soda costs about a penny to produce but you pay $1.00. Why? Because it's been proven you will. The only issue with CD's is that no one can sell less than the RIAA says.

        It's not an issue of price. If you don't want to pay $20 for a new CD, get a used copy.

        Ben
    • by DABANSHEE ( 154661 ) on Saturday January 11, 2003 @08:05PM (#5064396)
      This precedent of nations enforcing their laws outside their juristictions, is the fault of Israel, the US, France, Spain, Belgium & China, & is spreading, even Australia is getting in on the act. Meaning we are now expected to comply with every law of every country on the planet no matter where we are. This syndrome must stop. AFAIC the only laws that should be enforced extra-territorilly are the traditional laws of piracy on the high seas & treason.

      There are many examples of this:

      The US demanding the extradiction of Columbian & Burmese drug lords for acts committed while they were outside of US juristiction & thus under no compulsion to comply with US laws.

      Israel prosecuting a German with Latin American citizenship for war crimes that happened in Europe against people that weren't even Israelis & weren't even nationals of that bit of the planet that ended up becoming Israel [crwflags.com].

      Belgium prosecuting a Israeli for contravening Belium warcrimes laws in Lebanon

      Spain prosecuting Pinochet for acts commited against Spainards outside of Spain. The simple fact is once one becomes an expat one no longer has the protection of their country of citizenship & one must instead accept the protection of their host nation. If a expat doesn't like that they should go home. If Spain doesn't like the fact that Spainish expats in Chile were killed by the Pinochet regime then Spain should use diplomatic avenues, such as a trade embargo, to persuade Chile to prosecute Pinochete. No matter how distastefull it is, the killing of Spainards outside of Spain's juristiction is no concern of the Spainish law courts. If worse comes to the worst & the Chilian justice system refuses to do its duty, the Spanish secret service anti-ETA death squad could be resurrected to target the token Chilian bigwig & a message sent suggesting that the offsprings of Chilan bigwigs could come next.

      About 5 years ago or something a freighter from some Arab country smuggled a ship load of hashish to just off Oz's 200 mile economic line where the hashish was loaded onto some waiting Oz yachts & brought ashore. Well the Feds were waiting & cought the Yachties hashed up to the nines. After the freighter unloaded its cargo it headed to New Caledonia, where Oz feds were waiting with extradition warrents. I assume the New Caledonians played along because it's dependent on Oz in many ways, plus the French habitually enforce their laws extra-territorily anyway. So the Arab seamen ended up in a Australian court where the judge promptly threw out the case. He stated that even though they were definitly smuggling hash to Oz, as they never entered Oz juristiction while they were smuggling the hash to Oz, the seamen were under no obligation to comply with Oz laws. IMAO that's a top judge.

      Well recently, as in the last year or so, Australia succesfully applied for the extradition of a Yemani people smuggler from Indonesia, who they have prosecuted for breaking Australian people smuggling laws (smuggling Afghans 'n Kurds here) even though he has never been within Oz juristiction & thus IMAO has never been under any obligation to comply with Oz laws.

      Now the reason I don't like these concepts is because it sets precedents that's directly responsable for China arresting tourists & business travellers from overseas & throwing them in jail, simply for Besmirching the Reputation of China in foreign publications. You see public attacks on China's reputation are illegal in China. Also under Chinese laws all Chinese are considered within Chinese juristiction no matter where they are on the planet. Ontop of which China does not recognise the right of Chinese to renounce their citizenship. Meaning if say a Chinese person becomes an American & decides he doesn't want to be a dual citizen, & renounces his Chinese citizenship, China won't recognise it & as far as they are concerned he's still Chinese (albit maybe also American too) & still must comply with Chinese laws while in the US (or anywhere else for that matter). This even goes further, if someone has Chinese ancestry (no matter how distant), China reserves the right to consider that person Chinese & thus as far as they're concerned, obliged to comply with Chinese laws, even if that person has never been to China.

      This has led to many citizens of the West being arrested while in China on Businees or on holidays, for previously criticising China in western publications & particularly of late, on the web. IMAO the only way the world could stop such incidents is by an international treaty strictly regulating the limits of territorial juristiction. & no matter how much lawyers hate it, this treaty must be so clear & unambiguous that nothing is open to interpritation, no matter how inflexible it is & what the costs are in that regard. If it means people are free to kill each other on unregisted vessels in international waters, then so be it.

      The only thing I'd consider is extra-territorial enviromental laws, for example where nations have the right to enforce their enviromental laws on whatever international waters are closer to them than other countries, as long as they don't descriminate in favour of their own nationals in those waters tat are outside of their 12 mile territorial or 200 mile economic zone. The world's oceans are being fished out 7 times faster than they can be replenished, this has to stop. We don't want our oceans to end up as sterile as the North Atlantic cod fisheries.
  • by Anonymous Coward
    I wonder how long it will be until the next p2p jumps in to take their place. I'm surprised kazaa lasted as long as they did
    • I doubt Kazaa will just fall over and die so quickly. But whether they do or not, the effects of this precedent is much farther reaching than P2P networks. If someone can be sued outside of the US from inside it, this will affect the entire internet. Hopefully Kazaa (or anyone else) will fight back to turn around the decision to keep the internet the way it is.

      As far as a (ad free) replacement for Kazaa goes, though, check out WinMX [winmx.com].

  • I'm not too worried (Score:5, Interesting)

    by grandmaster_spunk ( 203386 ) on Saturday January 11, 2003 @12:58PM (#5062424)
    The amount of time a suit like this could take to make it's way through the courts is pretty big. Just look, they had to have a whole ruling just to determine if a suit was possible! Plus, even if Kazaa is found guilty of some wrongdoing, I seriously doubt that the "Pacific island nation of Vanuatu" where Kazaa is incorporated is going to care a whole heck of a lot. And finally, as we all know, there's nothing inherently illegal about Kazaa. Even my university's IS department says so!
    • Lets say that Kazaa is found to be intentionally violating copyright and damages are awarded and Vanuatu's judges tell the MPAA go to to hell.


      The MPAA still can get money from they if they attach the funds that Kazaa has in the USA or anywhere else that a judge would find the USA judgment valid.

    • Re: Vanatu (Score:5, Interesting)

      by King_TJ ( 85913 ) on Saturday January 11, 2003 @01:08PM (#5062485) Journal
      Nope... the island of Vanatu is largely just a haven for people trying to set up scams and phone sex hotlines. The mere fact that Kazaa has part of their operation linked to Vanatu pretty much speaks for itself. They knew they had a legally questionable operation going, so they placed it in the safest place possible.

      I had several friends who worked for the phone fraud department at MCI, and Vanatu was a running joke in their office. A great majority of the complaints received about "mysterious 900 number charges" (often $25 or more each) showing up on customer bills originated from operations in Vanatu.

      In fact, it wasn't uncommon to automatically shut off MCI service to customers who had abnormally high LD charges for the month, if Vanatu was involved at all.
      • by Anonymous Coward
        I live in Vanatu and do you know how hard it is for me to cruise Slashdot when my phone service is always being ..

        [NO CARRIER]

      • Re: Vanatu (Score:5, Insightful)

        by Anonymous Coward on Saturday January 11, 2003 @01:35PM (#5062612)
        Nope... the island of Vanatu is largely just a haven for people trying to set up scams and phone sex hotlines. The mere fact that Kazaa has part of their operation linked to Vanatu pretty much speaks for itself. They knew they had a legally questionable operation going, so they placed it in the safest place possible.

        I agree, it's simply appalling that someone would do something in a place where it's legal rather than seeking out the most represive regime they can. The next time someone criticises Saddam Hussein I'll expect them to go to Iraq to do it, not do it from some sinkhole of iniquity where that sort of behavious is allowed.
      • Re: Vanatu (Score:5, Insightful)

        by iggymanz ( 596061 ) on Saturday January 11, 2003 @01:41PM (#5062638)
        ...but note our U.S. telecom companies provide pipes to Vanatu, knowing darn well what's in those pipes. We are just as guilty, because it's all about money, baby.
        • Re: Vanatu (Score:3, Insightful)

          So what are you saying? That Vanatu shouldn't be allowed to have telephone connections at all?

          I suppose that means that if someone gets drunk and kills someone else on the highway, he's no more guilty than the construction company that connected his neighborhood to that highway?

      • by freeweed ( 309734 ) on Saturday January 11, 2003 @03:07PM (#5063021)
        Other people do bad things there, therefore everything done there is automatically bad? Interesting way of looking at things.

        I guess we better be afraid up here in Canada, as pretty soon we'll all be labelled a haven for treasonous draft-dodgers and, hell, a place where illegally freed slaves can live their own lives.

        Just because something is legal doesn't mean it's right.

        And equally so, just because something is illegal doesn't mean it's wrong.
  • by m_chan ( 95943 ) on Saturday January 11, 2003 @12:59PM (#5062428) Homepage
    In a startling turn of events, the judge also ruled that millions of Californians can sue Julius Caesar for his garlic breath that they have had to endure due to inhaling the same air as him [chello.nl]. Mr. Caesar could not be reached for comment.
  • noooooo (Score:3, Funny)

    by Anonymous Coward on Saturday January 11, 2003 @01:01PM (#5062435)
    Where will I get my virus infested games infested games, hot_18_action_downloader.exe's and video's of monkeys smelling their own poo!! WHAT HAS THE WORLD COME TO!! *kills self*
  • by jenkin sear ( 28765 ) on Saturday January 11, 2003 @01:01PM (#5062439) Homepage Journal
    Actaully, suing an australian company in a US-based court seems pretty reasonable, after the recent libel suit [slashdot.org] in australian courts against a US-based company...

    The question of whether kazaa is, in fact, violating the law should be settled in court somewhere, and somehow it doesn't seem like vanatu is the venue.
    • by Anonymous Coward

      My brother in law tried to sue someone in a Vanatue small claims court and wound up in a caldron of boiling water with a bunch of chopped carrots and onions.

    • by Tranvisor ( 250175 ) on Saturday January 11, 2003 @01:40PM (#5062633) Homepage
      I suppose one could only call this fair play if one thought that US laws should be applied everywhere in the entire world.

      Kazaa may have been downloaded to the US, but the company, its programmers, and its owners have never had a presence here. That means, guess what, you can't sue it here. The supreme court of california has already ruled on this and even if the little judge of the case says "These cases aren't the same like that" If and when Kazaa gets an appeal, it'll go straight to the Cal Supreme Court who will knock it down again on jurisdictional issues.

      If KaZaa had an office in California, it'd be different, but they don't. When the US steps on little countries' soverignty to regulate their buisnesses themselves all it does is get those countries pissed off at us.

      Win or lose, until any of those buisnessmen from that company get on a jet and come here, the MPAA will gain nothing but at most a hollow and ineffective paper victory.
      • When the US steps on little countries' soverignty to regulate their buisnesses themselves all it does is get those countries pissed off at us.

        Tell me about it. With North Korea making nukes and Iraq hiding nukes, the last thing the US needs is the vast military prowess of Vanatu to threaten war. Then again, maybe the White House switchboard will get bombed with collect calls from Vanatu that mysteriously get automatically accepted.
      • So, suppose that Kazaa is found liable, and no one (Vanatu, Australia, etc.) shuts down Sharman Networks. Does the RIAA/MPAA then try to regulate Internet traffic, i.e. go after ISPs that provide access to Sharman?
      • If and when Kazaa gets an appeal, it'll go straight to the Cal Supreme Court who will knock it down again on jurisdictional issues.

        This is incorrect. The Kazaa case is being heard in Federal District Court in Los Angeles. The first appeal would be to the 9th Circuit Court of Appeals.

        This court is generally considered to be liberal, but in fact there are a large number of conservative justices on the 9th Circuit. Decisions in the 9th Circuit often depend on exactly which 3 judges (out of 25 or so) get chosen to hear the appeal.

        After the 9th Circuit makes its ruling, the losing party is allowed to petition the US Supreme Court (not the California Supreme Court) to take the case. The US Supreme Court does not have to take the appeal from the 9th Circuit if they do not want to. It takes a vote of 4 justices (out of 9) to "grant cert", which means that the case is taken by the US Supreme Court.

        Of course, this part of the case will never get that far. You may not like the law, but it's pretty clear that Kazaa does have "substantial contacts" with California. Judge Wilson applied the facts correctly on this issue.

        The real question is whether Kazaa will win or lose on the merits of the case, not just this jurisdictional issue. It's not open and shut. Judge Wilson has a good reputation as being a fair judge. He won't automatically rule for the bad guys.

    • by rking ( 32070 ) on Saturday January 11, 2003 @01:46PM (#5062670)
      The question of whether kazaa is, in fact, violating the law should be settled in court somewhere, and somehow it doesn't seem like vanatu is the venue.

      That can only be settled on a per-country basis. We already know that they're not breaking the law in the Netherland (at least not by operating a file sharing service, they might be parking illegally or assassinating rivals for all I know).

      Only the Vanatu courts can determine whether they're doing anything illegal in Vanatu. Only the Autralian courts can determine whether they're doing anything illegal in Autralia, onlythe US courts can determine whether they're doing anything illegal in the USA and only the Iraqi courts can determine whether they're doing anything illegal in Iraq. Of course, deciding that they are doing somethign illegal in any particular country doesn't automatically give that country the power to do anything about it.

      There's no one universal answer that can be "settled in court somewhere".
  • by portnux ( 630256 ) on Saturday January 11, 2003 @01:01PM (#5062441)
    before the California media moguls will be shipped to Iran to face beheadings for making movies and music that does not conform to the laws of Islam?
    • I wonder if there's anything in the laws of Islam that can be used to do the same for the people in Redmond.

      That would be a nice twist, given that some of the terrorist whackos use Windows, Word & IE.

      Nice comment BTW, portnux. I agree with the AC. It's the best ever.

  • Multinational. Multinational.

    Yeah, I'm afraid.

    We all have ideas about what the future is going to be like. But almost without fail, I am corrected in one direction; Jennifer Government [amazon.co.uk] , sprawl and caste.

    *sigh
  • by Anonymous Coward
    I expect kazza will just ignore this. Since they are not Californian they are not subject to the rulings of the court. Californians are mind you so I guess the court needs to throw California users of Kazza into jail.

    Perhaps the judge will rule that the kazza servers be firewalled in California. Who knows.

    The reaction of Kazza to this ruling will be really intereting. But again - I think there is a high probability that the ruling will just be ignored.
  • Flashforward (Score:5, Insightful)

    by salesgeek ( 263995 ) on Saturday January 11, 2003 @01:02PM (#5062451) Homepage
    Two years from now we will read: In other news US Appealate Court has rescinded the decision of RIAA v. Kazaa stating that the trial court had no jursidiction to hear the case. RIAA will appeal to the supreme court...

    $G
  • P2P will survive (Score:3, Insightful)

    by RPI Geek ( 640282 ) on Saturday January 11, 2003 @01:04PM (#5062456) Journal
    As long as there are files to be shared, people will find ways to share them. Napster is down, Scour is down, now Kazaa will probably go down. I guess it's back to using IRC until someone figures out how to make a free, open source P2P network that costs nothing, isn't incorporated, and doesn't rely on a central server so that the courts can't sue any single person. Hopefully it will last longer.
    • As long as there are files to be shared, people will find ways to share them. Napster is down, Scour is down, now Kazaa will probably go down. I guess it's back to using IRC until someone figures out how to make a free, open source P2P network that costs nothing, isn't incorporated, and doesn't rely on a central server so that the courts can't sue any single person. Hopefully it will last longer.

      You mean like Freenet [freenetproject.org]? The freepages don't have everything, but they are often completely anonymous.
    • by Exiler ( 589908 ) on Saturday January 11, 2003 @01:50PM (#5062691)
      It's this little thing called Gnutella, works like a charm
  • by DarthWiggle ( 537589 ) <sckiwiNO@SPAMgmail.com> on Saturday January 11, 2003 @01:04PM (#5062461) Journal
    Just don't respond to the lawsuit. Ignore it. They'll lose by default, of course, but it's a civil suit. The court awards RIAA millions of dollars in damages.

    But then who enforces that decision?

    Feh, I'm soon to be a lawyer, but in this case, Kazaa shouldn't subject itself to the costs of defending itself in this sort of suit if they don't have the resources to make it a good fight. This is terrible legal advice, but it's good practical advice. If RIAA can't enforce a verdict, any victory they have will merely be symbolic. And it won't matter a hill of beans as far as precedent is concerned because a) there's plenty of precedent that what Kazaa is doing is wrong and b) the precedent would only have true practical effect for a Kazaa-like company based in the United States.

    Now, if this were a criminal case, it would be a completely different matter, because then there would be a rigorous enforcement system in place.

    But Kazaa could reasonably just ignore this suit, take the loss, and stick up their collective middle finger at it.
    • by glrotate ( 300695 ) on Saturday January 11, 2003 @01:30PM (#5062598) Homepage
      Is get the judge to issue an order pulling kazaa.com's domain registration as well as ordering Global Crossing to block their traffic.
      • by DarthWiggle ( 537589 ) <sckiwiNO@SPAMgmail.com> on Saturday January 11, 2003 @01:39PM (#5062629) Journal
        Actually, this presents a fascinating question. Why the hell doesn't the RIAA "report" Kazaa to the California Attorney General with evidence of criminal wrongdoing? Why all this fiddling around in civil courts when the practical effects of a civil verdict (an injunction that will likely be ignored or avoided, a money damages award that would probably go unpaid) are so much less than criminal sanctions?

        I can't decide what the RIAA and MPAA are up to. Are they just looking for exposure? Are they trying to generate some cash? Are they trying to establish civil precedents that will allow them to sue OTHER CONTENT PROVIDERS that have nothing to do with MP3 distribution and which could provide them with a much larger payoff? Are they trying to establish a chain of civil verdicts that will allow them to go to Congresscritters and "encourage" them to pass laws specifically targetting p2p?

        Or are they just stupid? (In the un-troll sense. I literally mean, do they honestly think they're going to win anything substantive?)

        If they wanted to get rid of Kazaa, they'd sic the criminal prosecutors on them... or are RIAA and MPAA afraid that what Kazaa is doing isn't wrong enough to be considered "criminal"?
  • Oh this is cute (Score:3, Interesting)

    by Raul654 ( 453029 ) on Saturday January 11, 2003 @01:05PM (#5062463) Homepage
    To blockquote the article
    Wilson pthe presiding judge] said the case was different from a similar one involving a Texas man who was sued in California for distributing a DVD-descrambling utility online. The California Supreme Court said in November 2002 that Internet distribution of software did not subject someone to California jurisdiction. The U.S. Supreme Court briefly put that decision on hold, then backed out of the case this month.

    Obviously there's already a case on point, so on appeal, jurisidiction will be reversed. But could somebody please tell me how this case is different?
    • Re:Oh this is cute (Score:2, Insightful)

      by Romothecus ( 553103 )
      It's not. He just wanted to say it is to avoid looking as though he was violating a precedent.
    • Re:Oh this is cute (Score:3, Insightful)

      by glitchvern ( 468940 )
      Wilson [the presiding judge] said the case was different from a similar one involving a Texas man

      Obviously there's already a case on point, so on appeal, jurisidiction will be reversed. But could somebody please tell me how this case is different?


      The difference is that Texas is a state in the United States and was considered to have stronger claim of jurisdiction on the case than California did(Texas or the other state which I no longer remember where the man initially put up the web site), but kazaa is based in another country and who has jurisdiction in the matter is bit trickier.
      • hmmm, assuming this quote is accurate, it seems pretty cut and dry to me:

        Internet distribution of software did not subject someone to California jurisdiction.

        In other words, if I distribute something online, I am not subject to the laws of the people who download it from me.

        As an example, note that places which distribute child porn from outside the US borders, even across the net, are not prosicuted by US law. Instead they are subject to their host countries laws. The same would / should apply here. Of course, that means there's nothing stopping California from ruling possesion of Kazza illegal, but that's another battle in and of itself.
  • Kazaa and the other file sharing networks have been sitting pretty for a long while now, but how much longer is it going to be before something more substantial than the courts "saber rattling" is going to happen.

    Plus, the amount of file sharing networks out there is going to increase as time goes on (I stopped using Kazaa for eMule).

    The only thing that is going to curb file sharing is when it is handled by the ISP's... even though I didn't get any warning, but other OptimumOnline customers did and were "advised" to curb the upload connections, it was still enough to make me manually throttle back my upload settings just as a precaution. OptimumOnline is too good a service to risk losing, plus they don't give customers the same amount of crap as Verizon and other broadband suppliers... even though they mentioned that the packet saturation was killing some of their nodes (there have been outages in the past couple of months), and not because they don't want people using the share networks (considering they still use the "you can download music faster" line in their adverts).

  • by core plexus ( 599119 ) on Saturday January 11, 2003 @01:06PM (#5062474) Homepage
    I mean, really, just because a Judge says they can be sued, what would be the effect? Even if the plaintiff's prevailed, what could the judge order that would have weight? I have won judgements against people and never collected a penny. Further, this case is very different from napster, in no small part due to the fact that the company is registered outside the U.S.

    There are more arguments, but I don't intend to try the case here on /.

    Man Gets 70mpg in Homemade Car-Made from a Mainframe Computer [xnewswire.com]

  • by Scalli0n ( 631648 ) on Saturday January 11, 2003 @01:07PM (#5062481) Homepage
    The Good: I downloaded well over 2000 mp3's and 10 movies with KazaaLite

    The Bad: Kazaa is going down.

    The Ugly: Kazaa is spyware.

    All things taken into account, hopefully the next p2p network won't have the spyware built in.

    ANYWAY...I thought Kazaa was a self-supporting network, i.e. people act as super-nodes who hold a list of files for others to search, and there's no centralized server. What control does Sharman have over whether or not the Kazaa network is still around, sure, they can stop the downloads of the client, but if the client can also act as a server...meh, it's unstoppable!
  • FastTrack? (Score:3, Insightful)

    by grandmaster_spunk ( 203386 ) on Saturday January 11, 2003 @01:08PM (#5062488)
    It seems to me that what happens to Kazaa the client doesn't matter so much as long as the FastTrack network, which Kazaa connects to, remains running. Since FastTrack is administered by a Dutch organization, and not by the makers of the Kazaa Media Desktop software, it seems like this suit is unlikely to affect anybody's ability to get files of the larger network.
  • by Anonymous Coward on Saturday January 11, 2003 @01:08PM (#5062489)
    This is hardly a surprise, and not simply limited to 1) the US or 2) Internet issues. If any business has significant contacts with a state, that business may be sued in that state. Of course, it might be difficult to get at the assets of that business located in another country, but that's a different issue.

    Italy and Australia have both issued recent high profile opinions that allow US businesses on the Internet to be sued in their respective countries. This is hardly a new thing.

    Unless of course you're a slashdotter who doesn't know a damn thing about the law.
    • Zippo v Zippo.com (Score:2, Interesting)

      Very true... in fact there was a case a few years ago, Zippo v Zippo.com, where Zippo (the lighter company, based in PA) sued a dot.com called Zippo.com (an "information delivery" company) for trademark violations in PA court. .com claimed that they never did any physical buisiness in PA so PA shouldn't have jurisdiction. Lighter company showed they did have subscribers in PA, hence were doing business there, hence they could be sued in PA.

      Same idea - jusisdiction of a court over a company that provided purely electronic product, in a different place, can be sued in a place where that product was used, even without physical presence. Difference is one is a state, the other a country.

  • Yahoo! (Score:5, Insightful)

    by deepchasm ( 522082 ) on Saturday January 11, 2003 @01:12PM (#5062507)

    Even if the case came to court and the judge ruled in favour of the media companies, would Sharman Networks have to pay?

    There is a precedent [com.com] for cases like this. Yahoo! did not have to comply with the French order because Yahoo! has their servers in the US and they are a US company.

    How is this any different?

    So what if millions of Californians use Kazaa? There are many times that number of Kazaa users who are not Californians. Millions of French people could access the US yahoo.com site - the ruling says:

    Although France has the sovereign right to regulate what speech is permissible in France, this court may not enforce a foreign order that violates the protections of the United States Constitution by chilling protected speech that occurs simultaneously within our borders

    What laws are the MPAA and RIAA using to sue Sharman Networks? Are they applicable in Australia or Vanuatu

  • This actually reminds me of a rumor of an old Phone scam, where you'd get a collect call, from a random caller. If you accepted the charges, you'd start being charged $400+/minute, while listening to some recording, devised to keep you on the line.

    When your phone bill came in, you'd have these charges, that you couldn't have removed, because you accepted the call, and the Government couldn't do anything about it, because it was from over seas, and out of their hands. So now, because the victims are a coropration, suddenly the courts CAN do something about it? That hardly seems fair.

    Whom do the courts look out for? Citizens, or Corporations?

  • by happyhippy ( 526970 ) on Saturday January 11, 2003 @01:20PM (#5062545)
    You shut down one, its replaced by more.
    • I think that they have been successful, even if only marginally, so far. Each time they shut down one, it is replaced, although not by one, but by many. This is actually a problem for file sharing. I used to be able to hop on napster and grab the song I was interested in at the moment (within reason of course) and have it downloaded in minutes. As the *AA threaten and sue, individuals and networks continue to innovate and create their own version of something secure and viable in the face of legal attack. The P2P options continue to be more and more diluted. Finding a specific song that I am interested in is now not nearly as straight forward. If they continue to make rubble out of boulders, it will only get worse.

      Actually, I have already given up on public swapping and just trade with a group of friends on a private server.

  • Even if they are ordered to shut down, are they not out of the country?

    Does a California judge really have that much authority or ability to dictate policy in an other country, with different laws and practices?

    Even if they can, of course there is always non-centralized P2P alternatives like Gnutella.. Resistance is futile.. ( and only breeds further discontent )

  • While they may rule in California that they can sue them, does not California's jurisdiction stop at the California border? Say they ignore the suit, the judge rules against them, and just don't pay up. What does California do then? The worst they could ever do it seems to me is prevent them from ever visiting California for fear of being arrested... not too much to worry about if you ask me. Its not like a ruling by a California court would allow then to expropriate funds from a foreign bank.

  • Stupid! (Score:5, Interesting)

    by zmooc ( 33175 ) <zmooc@[ ]oc.net ['zmo' in gap]> on Saturday January 11, 2003 @01:24PM (#5062567) Homepage
    I just put online these instructions [zmooc.net] on how to make a joint. Something that's illegal in the US - I live in the Netherlands. This is exactly the same as what Kazaa does, only their instructions are for your computer and they tell them to you from Australia. I kindly ask all of you that live in California to perform these instructions, as Kazaa asks you to let your computer perform their instructions.

    This decision by your judges has now made it possible for anyone in your country that does not like my instructions (which should be protected as Free Speech, something which your country is supposedly so proud of) to sue me. Not that I'd be responding or something but it's just stupid. I urge you all to actively do something about this aggresive act of world-domination which should even be illegal under in your constitution. You guys aren't making any friends this way.

    • Re:Stupid! (Score:3, Interesting)

      by buss_error ( 142273 )
      You guys aren't making any friends this way.

      I can see your point here. It's just that I didn't vote for 'em, don't approve of what they are doing, and can't do anything to stop it. I talk to a friend of mine, trying to tell him why what's going on is so bad, and the reaction I get is "You're just a liberal democrat", like that's a real answer to an arguement. (Yes, I am liberal, but I don't always vote for a Democrat. I vote for the person I think will do the best job.)

      So be angry with the government if you wish, and I'll agree with you. But don't call me part of the problem. I'm doing my part.

  • Going after Kazaaa makes about as much sense as suing Panasonic because one of it's phones was used to phone in a bomb threat. Duh.
  • This whole P2P issue will be over when Microsoft finally creates their own P2P program and distributes it along with their OS. It would be completely distributed to the mass markets. The average joe, not just the computer geeks who uses KaZaA now. With their lawyers they'd find the perfect way to get around all these silly laws. MS also has the brainpower to re-do Gnutella correctly so that it has no centralized servers and no one can get sued. And when someone does try to sue them, and if they are forced to stop distributing the application, then they can simply open source the application. I know many of you /. people are anti-MS for your own reasons. But sometimes MS can be cool. They do have a few open source applications out there. And they try to find any way they can to dominate in every market. So often they do come out with the best software. Especially when some other company already has a working product out. They'll take the concept and improve it to perfection.
  • Salman Rushdie is still under fatwa in Iran for publishing The Satanic Verses in the UK and US. Now the US courts have joined Ayatollah Khomeini in trying to suppress foreign publications. Sheesh.
  • From the article posting:

    U.S. District Judge Stephen Wilson said a lawsuit against Sharman Networks (the makers of Kazaa) could proceed.

    (The Australia-/Vanuatu-based company had filed a motion to dismiss the lawsuit, arguing it was not bound by U.S. laws since it did not have substantial contacts with California.)"

    Wow... Why isn't this a surprise. The Americans decide that people outside their own country are bound by their laws.

    If the RIAA wants to take on Kazaa, take them on in Australia. Oh wait, no that wouldn't work, because the Australian justice system wouldn't waste their time on this.

    Someone need to go let the states know that they don't own the world, yet, and until they do, companies from other countries do not lie under their jurisdiction.
    • by ArsSineArtificio ( 150115 ) on Saturday January 11, 2003 @02:02PM (#5062732) Homepage
      U.S. District Judge Stephen Wilson said a lawsuit against Sharman Networks (the makers of Kazaa) could proceed.

      (The Australia-/Vanuatu-based company had filed a motion to dismiss the lawsuit, arguing it was not bound by U.S. laws since it did not have substantial contacts with California.)"

      Wow... Why isn't this a surprise. The Americans decide that people outside their own country are bound by their laws.

      If the RIAA wants to take on Kazaa, take them on in Australia. Oh wait, no that wouldn't work, because the Australian justice system wouldn't waste their time on this.

      Someone need to go let the states know that they don't own the world, yet, and until they do, companies from other countries do not lie under their jurisdiction.


      Your disgust is founded in ignorance.

      Anyone in a common law system (USA, Australia, UK, etc.) can sue anyone else. There are only two considerations: a) whether it can be heard in a particular court and b) whether there is anything practical to be gained by it.

      Question B is not so much a question of law as a question of strategy. A court which would issue a decision can enforce its will only so far as the person losing is present within their jurisdiction (either they live there, or have assets there). People have sued the government of Iran in US federal court, and have won, and have collected their judgments out of funds belonging to Iran which are present in US banks. But if you were to sue North Korea and win (probably because nobody showed up to represent North Korea), there'd be little you could do to collect your judgment, because there wouldn't be any assets of North Korea within the jurisdiction of the court.

      So, setting aside question A for a moment, the RIAA can sue Kazaa in federal court in California. The question is whether they have anything to gain by winning. As a previous poster pointed out, Kazaa could just ignore the whole thing and take a loss, if they don't have anything *in* the US that a judgment could seize. (The RIAA probably wants an injunction of some kind, but even still it's questionable how useful it would be for the US to order Kazaa not to do business here anymore.)

      Question A has a lot more to do with the law, and jurisdictional questions are quite complicated. The basic idea is that you can only bring suit against someone in a place if that someone has had something substantial to do with the place. (Lives there, does business there, has assets located there, committed an act there, etc.)

      The decision referred to in the headline is that the judge decided that the fact that many people had downloaded Kazaa software in California was a sufficient contact with California that Kazaa could be sued there. He reached this decision after examining the law of California. If Kazaa appeals, the court of appeals will either confirm that this is the law, or will overturn the judge and not permit him to hear the case.

      In light of the above, your rant is more than a little silly. Every nation is willing to submit every person to their own laws - the only question is whether it will do the plaintiff any good, and whether the courts of that nation will let such a lawsuit go forwards. The US is no different from anyone else in this respect. "Companies from other countries" do lie under US jurisdiction, insofar as they have ever had anything to do with the United States.

  • by MoneyT ( 548795 ) on Saturday January 11, 2003 @01:46PM (#5062671) Journal
    Kazza and all the P2P places should move to Sealand http://www.sealandgov.com/
    • The British could shut down sealand in an afternoon if they so desired and got tired of it. If not by British special forces landing helicopters on the pad there and dismantling the dish on top then by cutting the pipe where it _must_ come ashore on the island.

      Most likely both. Don't think that they wouldn't do it either if Sealand ever became a nuisance.
  • by Newer Guy ( 520108 ) on Saturday January 11, 2003 @02:08PM (#5062767)
    When will the lawyers and courts in this country realize that the USA isn't the ONLY country on earth? First they pulled this crap with Elcomsoft, now Kazaa! HEY (pinhead) JUDGE...they aren't from America! Is our country so arrogant that we honestly believe our laws and rules apply to everyone in the world? Kazaa was founded in The Netherlands, and now originates from Vanatu. Last time I checked, neither of these places were U.S. states or possessions. Unlike Elcomsoft, Kazaa never sold anything in the USA nor is their software hosted by them on US servers.
  • Eh. (Score:3, Insightful)

    by JayBlalock ( 635935 ) on Saturday January 11, 2003 @02:10PM (#5062778)
    This is just California power-grabbing. In the last couple years, CA judges have, for the most part, being taking every opportunity to try to expand their jurisdiction, whether it's legal, logical, or even feasible. As has been pointed out, even IF Kazaa was successfully sued, it's absolutely unenforcible. All of its business offices are located out of country, and the servers are pretty much decentralized. So, let's say the trial proceeds, and Kazaa is fined millions of dollars in a court order. Kazaa says 'Neener neener, we're in Austrailia' and ignores it. Since ignoring a court order is a felony, Federal charges would be filed. Kazaa ignores those as well. At which point the US government might try to tell Austrailia to send them to us, and Austrailia would tell us to piss off. At which point the matter is ended. If the people who made Kazaa never step foot in the US, nothing else happens. (and given what happened to Skylarov, I highly doubt they planned to EVER come to the US) End of story.
  • by phr2 ( 545169 ) on Saturday January 11, 2003 @02:18PM (#5062822)
    I wonder whether that judge thinks it's ok for Voice of America to be sued in China or Iraq or wherever else the local laws don't approve of it, since people are listening to it there. The whole point of VOA is to get information to people that their governments don't want them to have. Well, Kazaa is now trying to get software to us that our government doesn't want us to have. It's ironic to see what happens when the shoe is on the other foot.
  • FastTrack history (Score:3, Interesting)

    by mistered ( 28404 ) on Saturday January 11, 2003 @02:32PM (#5062878)
    There's a lot of discusson on the FastTrack network, Sharman networks, Kazaa, etc. and a lot of confusion. Slyck has an informative FastTrack history [slyck.com] that explains how Kazaa/FastTrack got to where it is now.

  • by fire-eyes ( 522894 ) on Saturday January 11, 2003 @02:54PM (#5062968) Homepage
    In the days that gun manufacturers can be sued for what gun owners do, this is not a surprise.

    Personal responsibility is out the window, and I don't see it ever coming back.
  • Jurisdiction (Score:5, Insightful)

    by yuri benjamin ( 222127 ) <yuridg@gmail.com> on Saturday January 11, 2003 @03:51PM (#5063188) Journal
    From the article:
    Sharman Networks...should be held accountable by U.S. laws.

    Bzzzt! Wrong! They should be held accountable by Autralian and Vanuatan laws. The United States (Je naait 't steeds :-) does not have jurisdiction over the world. Not that they'd have any trouble getting an Australian court to bend over for the US.

    If I owned a company and got a summons from a US court I would RSVP that I am declining the invitation (and contact a lawyer to prepare for any possible extradition hearing).

    I don't think my government would send me over there unless the US told them I'd killed someone or something like that.
    • If I owned a company and got a summons from a US court I would RSVP that I am declining the invitation (and contact a lawyer to prepare for any possible extradition hearing).

      It's not a criminal matter. Nobody would be extradited for anything.

      It's a civil matter. If you're a New Zealander and your company does business in the US, it's only fair that your company could be sued as a result of those actions. (And vice versa. If an American company did something in New Zealand, New Zealanders should be able to sue them in New Zealand courts.)

      If your company doesn't do business in the United States, and somebody tries to sue you there, screw 'em. Your best bet would be to not even bother to RSVP. The guy would win by default, but since you don't own anything in the US, then there's nothing he could do to you.

      Sheesh. It's easy to be paranoid about the US when you invent your own fears.
  • by The Evil Couch ( 621105 ) on Saturday January 11, 2003 @04:44PM (#5063380) Homepage
    The California Supreme Court has ruled against Kazaa and has declared that 20 million dollars in damages be paid. All bills sent to Kazaa's headquarters were marked "Return to sender"

    In other related news, the California Supreme Court has ruled that all public libraries are a direct infringement of copyright laws, since they contain large volumes of books and at least one copying machine, used for the exlicit purpose of copying books, without paying for them.
  • by pcx ( 72024 ) on Saturday January 11, 2003 @06:16PM (#5063858)

    http://news.google.com/news?hl=en&q=california+s up reme+court+dvd+stay

    Just a few weeks ago the Supreme Court reviewed the Pavlovich case to decide jurisdiction (Pavlovich posted his website in Indiana and is now a resident of Texas). The courts ruled that merely posting a website does not give California jurisdiction. The Supreme Court put a stay on that decision for a week and then let the stay expire -- reducing the chances the case would make it on appeal to the high court.

    Based on the findings in this case and the Supreme Court's seeming approval, the ruling against Kazaa directly contradicts previous precedents.

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