Sharman Networks Ltd., owner of the Kazaa file-sharing network, settled a class-action lawsuit brought by music publishers who claimed the company enabled users to illegally download songs.
The settlement must be approved by the board of the National Music Publishers' Association to take effect, the trade group said. Terms weren't disclosed. The New York Times, citing an unidentified person with knowledge of the agreement, reported the amount was about $10 million.
The music industry has in recent years blamed file sharing and other illegal copying for declining sales. Sharman in July agreed to pay more than $100 million to settle claims by Vivendi SA's Universal Music, EMI Group Plc and Warner Music Group. The Supreme Court last year ruled that operators of peer-to-peer networks can be held liable for copyright infringement.
“The anticipated settlement represents an important victory for songwriters, music publishers and music fans alike,” David Israelite, president of the music publishers group, said in the statement.
Lawyers for Sydney-based Sharman and the music publishers said at a Monday hearing in federal court in Los Angeles that an agreement had been reached, and that they would file a proposed settlement with the court “in the next couple of days.” U.S. District Court Judge Stephen Wilson said at the hearing he would give final approval to a separate settlement the publishers reached with Grokster, another file-sharing network.
Roderick Dorman, a lawyer for closely held Sharman in Los Angeles, didn't immediately return a call seeking comment.
