Court Rules Against LimeWire

LABELS DEFEAT LIMEWIRE: U.S. District Court Judge Kimba Wood ruled that LimeWire is guilty of copyright violations, citing the Supreme Court’s Grokster decision as a guide. The company, based in N.Y. and owned by investor Mark Gorton, had never reached a settlement with the major labels, even though they did work with some indies. Documents stated the company generated revenues of $20 million in 2006. The company courted users by employing Google search terms such as “MP3” and “Napster” to drive them to the site. Next up is a June 1 conference with Judge Wood to decide its future. LimeWire CEO George Searle says the company “remains committed to developing innovative products and services for the end-user and to working with the entire music industry, including the major labels, to achieve this mission.” RIAA CEO Mitch Bainwol commented: “This is an important milestone in the creative community’s fight to reclaim the Internet as a platform for legitimate commerce.” The major labels have won this battle, but can they still win the war? (5/12p)