Lime Wire, squeezed, files countersuit

by admin September 27, 2006 at 3:46 am

One of the last remaining peer-to-peer havens is fighting to stay alive.

Lime Wire, which was hit with a lawsuit in August by Warner Bros. Records, Virgin Records America, Sony BMG Music Entertainment and other music labels, filed a counterclaim in U.S. District Court in New York on Monday. The software company alleges in court filings that the record companies have engaged in unfair business practices to scare away its users.

Lime Wire develops peer-to-peer technology, which is often used by individuals to create copies of music and distribute it over the Internet. More than a dozen record companies have joined in the lawsuit against Lime Wire, alleging that its technology provides a means for copyright infringement.

In its countersuit, Lime Wire states that the record labels launched their own digital-distribution Web sites and alleges that the labels joined forces to be the sole recipients of any financial benefit.

“Their goal was simple: to destroy any online music distribution service they did not own or control, or force such services to do business with them on exclusive and/or other anticompetitive terms,” the countersuit says.

Read more: ZDNet