Kazaa, Morpheus conceding defeat
ZDNet | at | by Mike
A legal fight that has pitted file-swapping software companies Kazaa BV and StreamCast Networks against big record labels and movie studios is collapsing as the small companies run out of funds. Netherlands-based Kazaa BV, which created the file-swapping technology underlying Kazaa, Grokster and earlier versions of Morpheus, is conceding defeat--although its founders already appear to have started another near-identical company. Meanwhile, StreamCast is losing a high-powered attorney with a winning track record against the music companies in court.
"The case is in jeopardy of collapsing simply from the financial attrition of the defendants before a decision on the merits can be reached," StreamCast's attorneys wrote in a legal brief filed with the court Friday. "If that happens, it would be an unfortunate procedural triumph of a band of enormously powerful and wealthy companies, arising purely from their power and entirely unrelated to the substantive issues in the case."