July 18, 2011
Intellectual Property, Media Law Alerts

Bitter LimeWire Copyright Infringement Claim Settles to the Tune of $105 Million
by Cyrus Wadia

In May, the peer-to-peer (P2P) file sharing service LimeWire reached a $105 million settlement agreement with major recording labels to end the "massive" copyright infringement lawsuit just as jury trial began in a New York district court. 
In 2006, recording labels filed suit against LimeWire for facilitating copyright infringement of copyrighted music (see Arista Records LLC v. Lime Group LLC, 715 F. Supp. 2d 481 (2010)).  A permanent injunction shut down the P2P service in October 2010, and a jury trial was set to determine penalty amount. The recording industry initially demanded a whopping $75 trillion, but was nonetheless pleased with settlement.  RIAA Chairman and CEO Mitch Bainwol called the resolution "another milestone in the continuing evolution of online music to a legitimate marketplace that appropriately rewards creators."
*** Mr. Wadia recognizes Jong Cho's assistance in the preparation of this alert.
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