Before Megaupload there was Limewire, a file-sharing platform that attracted millions of users to trade copyrighted material under the pretense of file backup. Unfortunately, Limewire was being used for illegal pirating of software, movies and music, among other things.
The company settled a lawsuit by music producers for $105M, yet that only opened up Pandora’s Box for them. Now, indie record labels are finding inroads to make a lawsuit, as well as Hollywood studios that can prove that Limewire was being used maliciously.
An injunction ensued last year for the file-sharing company. Any company similar to them was also to be shut down.
If various studios; such as, Disney, Paramount Pictures, Twentieth Century Fox and the like can put a dollar amount to the damages Limewire inflicted, there perhaps could be an even bigger lawsuit. The studios allege that titles like Harry Potter.
After the Limewire case, similar companies were going to find it a lot harder to conduct their business unless they could prove that people were sharing files for backup purposes. Piracy has been targeted with more focus now, although Limewire wasn’t as bad as Megaupload it still made for a stark precedent. The studios mentioned haven’t made a settlement value yet but have inroads to make a case.
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