Statement from Sharman Networks

Statement from Sharman Networks

Record company lawyer 'shot himself in the foot,' according to Judge in Universal v Sharman hearing

SYDNEY, Australia, Nov. 25 /PRNewswire/ -- The Federal Court of Australia yesterday granted Sharman Networks a further stay of the injunction ordered on 5 September 2005.

During the hearing Justice Wilcox also expressed anger about the record companies' technical representatives failing to attend the second court-ordered technical conference.

Justice Wilcox said that when he had heard that the technical representatives of the record companies had failed to turn up for the court ordered conference, he was "extremely angry" and that the behaviour of Mr. Michael Williams, lead lawyer for Gilbert & Tobin - the firm which represents the Australian music industry - towards the Federal Court official overseeing the technical process was not acceptable. Justice Wilcox also said that Mr. Williams had "shot himself in the foot."(1)

A first technical meeting had been held with considerable success and paved the way for modifications to be made to the Kazaa software to ensure its continued availability.

Despite objection from the record companies, Sharman Networks was granted a further stay until late in February 2006 conditional on Sharman modifying its software. The court also indicated that it was not prepared to make an order that Sharman give security for damages. Counsel for the record companies indicated they would be seeking $200m.

A spokesperson for Sharman said the action of the record companies in refusing to attend the second court-ordered meeting revealed that their true intention was not to foster agreement about an acceptable filtering technology, but to shut down Kazaa and rid themselves improperly of a competitor.

Accordingly at the conclusion of the hearing Justice Wilcox granted a further stay. Meanwhile the appeal to the full court will be heard in late February 2006.

(1) The court in handing down its judgement on 5 September 2005 made a
landmark ruling giving the parties time to agree on a protocol to
allow Sharman Networks to adjust its software so Kazaa could continue
to be distributed.

For more information, please contact:
Julie Fenwick, ICON International Communications
+61 2 8235 7600 (work)
+61 423 174 424 (mobile)
julie.fenwick@iicpr.com

Source: Sharman Networks

CONTACT: Julie Fenwick of ICON International Communications,
work: +61-2-8235-7600, mobile: +61-423-174-424, julie.fenwick@iicpr.com

NOTE TO EDITORS: Excerpts from the transcript will be forwarded as soon as they become available.

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