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July 28, 2006 / 10:25 AM

Kazaa settles legal fights

WASHINGTON, July 28 (UPI) -- The Australian company behind Kazaa, whose technology introduced millions to online movie and music piracy, is paying millions to settle lawsuits.

Sharman Networks Ltd.'s Kazaa has agreed to pay more than $115 million to settle lawsuits with the Motion Picture Association of America, among others, the San Jose (Calif.) Mercury News reported Friday. Sharman also said it would work with entertainment companies to sell licensed content.

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Created by Skype founders Niklas Zennstrom and Janus Friis, both from the Netherlands, Kazaa agreed to employ filtering software to stop the illegal distribution of copyrighted files.

"This settlement marks the dawn of a new age of cooperation between peer-to-peer technology and content industries," said Nikki Hemming, chief executive of Sharman Networks, which bought Kazaa from Zennstrom and Friis and is based in Vanuatu.

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