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"The constructive approach of iMesh stands in stark contrast to other file-sharing businesses who thumb their noses at Congress, continue to offload liability onto users, and dupe America’s kids into breaking the law."
——Mitch Bainwol, RIAA Chairman/CEO

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The Recording Industry Association of America today announced that its member companies have reached a settlement of its copyright infringement lawsuit against iMesh, a peer-to-peer network that the record companies alleged facilitates unauthorized file-trading.

In September 2003, the major record companies brought a lawsuit against iMesh for contributing to the illegal copying and distribution of copyrighted works by iMesh users.

As conditions of the out-of-court settlement, iMesh has agreed to settle claims with the record companies for $4.1 million and migrate to an online business that abides by U.S. copyright laws.

Said RIAA Chairman/CEO Mitch Bainwol: “Peer-to-peer technologies hold real promise. This settlement with iMesh is an opportunity to demonstrate that promise in the legitimate marketplace. The constructive approach of iMesh stands in stark contrast to other file-sharing businesses who thumb their noses at Congress, continue to offload liability onto users, and dupe America’s kids into breaking the law.

“That is precisely why Senators Hatch and Leahy have introduced legislation that would make it clear that those who intentionally induce others to break the law should themselves be liable. I hope that gadfly Lefsetz is happy, but I know he'll find something else to kvetch about now."

The original lawsuit brought by the record companies was filed in the federal court for the Southern District Court of New York.

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