Statement from Sharman Network

Statement from Sharman Network

Australian Record Companies Flout Federal Court Judge

SYDNEY, Australia, Dec. 6 /PRNewswire/ -- For the second consecutive time, the Australian record companies in the Kazaa case have announced an intention to defy Federal Court of Australia judge, Justice Wilcox.

In a landmark decision on 5 September, His Honour guaranteed the continued existence and operation of the Kazaa system until an appeal is heard, which will be in February 2006.

Earlier today, the Australian record companies announced their intention to shut Kazaa down, which is in direct contravention of His Honour's stated intentions as expressed in the court judgment on 5 September[1], and the hearings on 10 October[2] and 24 November[3]. The announcement by the Australian record companies reaffirms a media statement by the CEO of ARIA (Australian Recording Industry Association), Mr. Stephen Peach last week, where he said, "There will have to be filters in place by 5 December or Kazaa will be shut down."

ARIA's comments were in response to a decision by Sharman Networks Ltd (SNL) to cease distribution of Kazaa in Australia before midnight on 5 December 2005, using proven geotargetting technology and warnings prohibiting existing users from using the application. In doing so, Sharman Networks complied with the Court's 5 September orders[4] relating to authorisation of copyright in Australia, pending the imminent appeal in February. Sharman Network's action was made necessary as a direct result of the applicants' and their lawyers' intransigence.

On 24 November, His Honour expressed frustration with the tactics of the record companies. Justice Wilcox said that record company lawyer Michael Williams had "shot himself in the foot" by refusing to have the record companies' technical experts turn up to a court ordered meeting. During the conclave, technical experts from both sides affirmed that Audible Magic could provide an excellent long term filtering solution for both parties.

Sharman Networks remains committed to the continued development of the Audible Magic filtering solution, with or without the assistance of the Australian record companies. While Sharman Networks continues to work on the Audible Magic filtering solution preferred by the applicants' parent companies, they are determined to comply with the Court's order of 5 September regarding authorisation of copyright in the territory of Australia.

According to a spokesperson for SNL: "We are doing everything in our power to comply with the Court's orders. First, they refused to turn up to a conclave, and then they threatened to shut us down. It is clear they are only interested in removing a competitor."

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

Footnote References:
[1] His honour wrote in the 5 September Judgment:

"I am anxious not to make an order which the respondents are not able to obey, except at the unacceptable cost of preventing the sharing even of files which do not infringe the applicants' copyright. There needs to be an opportunity for the relevant respondents to modify the Kazaa system in a targeted way, so as to protect the applicants' copyright interests (as far as possible) but without unnecessarily intruding on others' freedom of speech and communication."

[2] His honour said during the 10 October hearing:

"If one had the clairvoyance and you knew the outcome of the appeal, you could make a just order. If, for instance, the appeal succeeds and I got it all wrong, then it would be outrageous for me to have closed down Kazaa."

[3] His honour said during the 24 November hearing:

"I also am aware that we've got an appeal listed in two months time and if it was totally successful, then any order (against the Sharman parties) would have been misconceived and the damage that you would suffer would probably not be recompensed."

[4] Order 4 of the September 5 Judgment:

The infringing respondents be restrained, by themselves, their servants or agents, from authorising Kazaa users to do in Australia any of the infringing acts, in relation to any sound recording of which any of the applicants is the copyright owner, without the license of the relevant copyright owner

Source: Sharman Networks

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

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