NEW YORK (Cyptonomicon Website) - In a move that Sharman Networks is calling a "knee jerk reaction," recording industry representatives raided the Australian homes and offices of company executives searching for evidence of copyright violation. Sharman Networks is the owner of the popular Kazaa file trading network.
Music Industry Privacy Investigations, the group that conducted the raids after getting the green light from a federal judge (Note to US readers, approval came from an Australian federal judge.) Michael Speck, the group's general manager said it will begin a general legal action against Sharman this coming Tuesday.
The Sydney, Australia based Sharman Networks accuses the industry group of "gross misrepresentation," and calls the action a "waste of time."
During the raids, the offices of Sharman Networks, Brilliant Digital Entertainment and three universities, University of Queensland, the University of New South Wales and Monash University, were searched. Internet technology providers Akamai Technologies AAP, NTT Australia, Telstra Corporation and NTT Australia IP, were also searched in an effort to discover evidence of illegal "internet piracy."
A similar legal battle was recently waged in the Netherlands, with the Dutch Supreme Court ruling Sharman did not violate copyright laws.
Legal accusations against providers of technology that can be used for illegal copyright violation have proved difficult to make stick for recording industry lawyers. Recent decisions in the Johansen and Bunner cases in Norway and the United States seem to set the bar relatively high for the recording industry.
In the Johansen case, a Norwegian appeals court ruled that charges could not proceed without specific evidence of copyright violation. Noting that the technology could be used for legitimate purposes, the court put the burden on the industry to provide specific evidence of actual copyright violation when bringing charges.
The Johansen case is similar to charges expected to be filed against Sharman, that manufactures a technology that can be used for legitimate file sharing as well as illegal copyright violation.
In the United States, the RIAA has recently dropped charges against Andrew Bunner in the wake of Johansen's legal victory. During a related case (MGM vs. Grokster), US federal judge John T. Noonan is quoted,
You can use these harsh terms, but you are dealing with something new, and the question is, does the statutory monopoly that Congress has given you reach out to that something new. And that's a very debatable question. You don't solve it by calling it 'theft.'
The industry remains resolute in it's Australian endeavor, however. Confident of a victory in court, Speck gave this warning to the file sharing community, "This sends a very clear signal to internet pirates in Australia that the game is up."
The Recording Industry Association (ARIA) CEO Steven Peach quotes, "ARIA supports the industry's move to stop the illegal behavior of file sharing networks ... The 'free ride' simply can't continue indefinitely at the expense of the owners and creators of the music."
Sharman Networks sees things differently, reminding users "Sharman bought the Kazaa software two years ago with the express purpose of building it into a legitimate channel for the distribution of licensed, copyright protected content."
It remains to be seen, however, how the Australian courts will view this issue.