Court Rules Against Peer-To-Peer Site LimeWire

Online news network CNET is reporting that a federal court has found the company that operates file-sharing service LimeWire liable for copyright infringement.

On Tuesday (5/11), U.S. District Judge Kimba Wood granted summary judgment in favor of the RIAA’s claims that Lime Group, parent of LimeWire software maker Lime Wire, and founder Mark Gorton committed copyright infringement, engaged in unfair competition, and induced copyright infringement.

The court decision could represent the biggest threat to online file sharing in years. According to a survey by the NPD Group, Limewire users account for 58 percent of the people who said they downloaded music from a peer-to-peer service last year. In the last week alone, the software was downloaded nearly 340,000 times.
The next step by the RIAA is to get a preliminary injunction and force Lime Wire to cease LimeWire’s file-sharing functionality.

The RIAA has said it is entitled to the maximum statutory damages, which is likely in the millions.