28 July 2006

Kazaa settlement

You may have read about Kazaa's settlement with the music industry for copyright infringement (see this, for example). The amount of this settlement was reported to be US$115 million. Since Kazaa is a free service, you might wonder where they came up with the money for this settlement. So did Eric Schonfield at B2, and he offers this explanation, though the NYTimes article argues otherwise.

Which explanation do you find satisfactory? What does this say about the future of P2P systems in dealing with copyrighted material?

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