Kazaa

History

Kazaa and FastTrack were originally created and developed by Estonian programmers from BlueMoon Interactive^[2] including Jaan Tallinn and sold to Swedish Niklas Zennström and Danish Janus Friis (who were later to create Skype and later still Joost and Rdio). Kazaa was introduced by the Dutch company Consumer Empowerment in March 2001, near the end of the first generation of P2P networks typified by the shutdown of Napster in July 2001. Skype itself was based on Kazaa's P2P backend, which allowed users to make a call by directly connecting them with each other.^[3]

Initially, some users of the Kazaa network were users of the Morpheus client program, formerly made available by MusicCity. Eventually, the official Kazaa client became more widespread. In February 2002, when Morpheus developers failed to pay license fees, Kazaa developers used an automatic update ability to shut out Morpheus clients by changing the protocol. Morpheus later became a client of the gnutella network.

Lawsuits

Consumer Empowerment was sued in the Netherlands in 2001 by the Dutch music publishing body, Buma/Stemra. The court ordered Kazaa's owners to take steps to prevent its users from violating copyrights or else pay a heavy fine. In October 2001 a lawsuit was filed against Consumer Empowerment by members of the music and motion picture industry in the USA. In response Consumer Empowerment sold the Kazaa application to Sharman Networks, headquartered in Australia and incorporated in Vanuatu. In late March 2002, a Dutch court of appeal reversed an earlier judgment and stated that Kazaa was not responsible for the actions of its users. Buma/Stemra lost its appeal before the Dutch Supreme Court in December 2003.

In 2003, Kazaa signed a deal with Altnet and Streamwaves to try to convert users to paying, legal customers. Searchers on Kazaa were offered a free 30-second sample of songs for which they were searching and directed to sign up for the full-featured Streamwaves service.^[4]

However, Kazaa's new owner, Sharman, was sued in Los Angeles by the major record labels and motion pictures studios and a class of music publishers. The other defendants in that case (Grokster and MusicCity, makers of the Morpheus file-sharing software) initially prevailed against the plaintiffs on summary judgment (Sharman joined the case too late to take advantage of that ruling). The summary judgment ruling was upheld by the Ninth Circuit Court of Appeals, but was unanimously reversed by the US Supreme Court in a decision titled MGM Studios, Inc. v. Grokster, Ltd.^[5][6]

Following that ruling in favor of the plaintiff labels and studios, Grokster almost immediately settled the case. Shortly thereafter, on 27 July 2006, it was announced that Sharman had also settled with the record industry and motion picture studios. As part of that settlement, the company agreed to pay $100 million in damages to the four major music companies—Universal Music, Sony BMG, EMI and Warner Music—and an undisclosed amount to the studios.^[7] Sharman also agreed to convert Kazaa into a legal music download service.^[8] Like the creators of similar products, Kazaa's owners have been taken to court by music publishing bodies to restrict its use in the sharing of copyrighted material.

While the U.S. action was still pending, the record industry commenced proceedings against Sharman on its home turf. In February 2004, the Australian Record Industry Association (ARIA) announced its own legal action against Kazaa, alleging massive copyright breaches.^[9] The trial began on 29 November 2004. On 6 February 2005, the homes of two Sharman Networks executives and the offices of Sharman Networks in Australia were raided under a court order by ARIA to gather evidence for the trial.

On 5 September 2005, the Federal Court of Australia issued a landmark ruling that Sharman, though not itself guilty of copyright infringement, had "authorized" Kazaa users illegally to swap copyrighted songs. The court ruled six defendants—including Kazaa's owners Sharman Networks, Sharman's Sydney-based boss Nikki Hemming and associate Kevin Bermeister—had knowingly allowed Kazaa users illegally to swap copyrighted songs. The company was ordered to modify the software within two months (a ruling enforceable only in Australia). Sharman and the other five parties faced paying millions of dollars in damages to the record labels that instigated the legal action.^[10]

On 5 December 2005, the Federal Court of Australia ceased downloads of Kazaa in Australia after Sharman Networks failed to modify their software by the December 5 deadline. Users with an Australian IP address were greeted with the message "Important Notice: The download of the Kazaa Media Desktop by users in Australia is not permitted" when visiting the Kazaa website. Sharman planned to appeal against the Australian decision, but ultimately settled the case as part of its global settlement with the record labels and studios in the United States.^[11]

In yet another set of related cases, in September 2003, the Recording Industry Association of America (RIAA) filed suit in civil court against several private individuals who had shared large numbers of files with Kazaa;^[12] most of these suits were settled with monetary payments averaging $3,000. Sharman Networks responded with a lawsuit against the RIAA, alleging that the terms of use of the network were violated and that unauthorized client software (such as Kazaa Lite, see below) was used in the investigation to track down the individual file sharers. An effort to throw out this suit was denied in January 2004. However, that suit was also settled in 2006 (see above). Most recently, in Duluth, Minnesota, the recording industry sued Jammie Thomas-Rasset, a 30-year-old single mother. On 5 October 2007, Thomas was ordered to pay the six record companies (Sony BMG, Arista Records LLC, Interscope Records, UMG Recordings Inc., Capitol Records Inc. and Warner Bros. Records Inc.) $9,250 for each of the 24 songs they had focused on in this case. She was accused of sharing a total of 1,702 songs through her Kazaa account. Along with attorney fees, Thomas may owe as much as half a million dollars. Thomas testified that she does not have a Kazaa account, but her testimony was complicated by the fact that she had replaced her computer's hard drive after the alleged downloading took place, and later than she originally said in a deposition before the trial.^[13]

Thomas-Rasset appealed the verdict and was given a new trial. In June 2009 that jury awarded the recording industry plaintiffs a judgment of $80,000 per song, or $1.92 million.^[14] This is less than half of the $150,000 amount authorized by statute.^[15]

The federal court found the award "monstrous and shocking" and reduced it to $54,000. The recording industry offered to accept a settlement of $25,000, with the money going to charities that support musicians. Apparently undaunted, Thomas-Rasset was able to obtain a third trial on the issue of damages. In November 2010 she was again ordered to pay for her violation, this time $62,500 per song, for a total of $1.5 million. At last word, her attorneys were examining a challenge to the constitutional validity of massive statutory damages, where actual damages would have been $24.^[16]

Bundled malware

In 2006 StopBadware.org identified Kazaa as a spyware application.^[17] They identified the following components:

• Cydoor (spyware): Collects information on the PC's surfing habits and passes it on to Cydoor Desktop Media.
• B3D (adware): An add-on which causes advertising popups if the PC accesses a website which triggers the B3D code.
• Altnet (adware): A distribution network for paid "gold" files.
• The Best Offers (adware): Tracks user's browsing habits and internet usage to display advertisements similar to their interests.
• InstaFinder (hijacker): Redirects URL typing errors to InstaFinder's web page instead of the standard search page.
• TopSearch (adware): Displays paid songs and media related to a Kazaa search.
• RX Toolbar (spyware): The toolbar monitors all sites visited with Microsoft Internet Explorer and provides links to competitors' websites.
• New.net (hijacker): A browser plugin that allowed users to access several of its own unofficial Top Level Domain names, e.g., .chat and .shop. The main purpose of this was to sell domain names such as www.record.shop which is actually www.record.shop.new.net (ICANN did not allow third-party registration of generic top level domains until 2012).

Transitional period

Kazaa's legal issues ended after a settlement of $100 million in reparations to the recording industry.^[8] Kazaa, including the domain name, was then sold off to Brilliant Digital Entertainment, Inc.^{[citation needed]} Kazaa then operated as a monthly music subscription service allowing users to download unlimited songs, before finally ending the service in 2012.^{[citation needed]} The Kazaa.com website is no longer accessible as of 2017, however Brilliant Digital Entertainment, Inc. continues to own the domain name.

Some users still use the old network on the unauthorized versions of Kazaa, either Kazaa Lite or Kazaa Resurrection, which is still a self-sustaining network where thousands of users still share unrestricted media. This fact was previously stated by Kazaa when they claimed their FastTrack network was not centralized (like the old Napster), but instead a link between millions of computers around the world.^{[citation needed]}

However, in the wake of the bad publicity and lawsuits, the number of users on Kazaa Lite has dropped dramatically. They have gone from several millions of users at a given time to mere thousands.^{[citation needed]}

Without further recourse, and until the lawsuit was settled, the RIAA actively sued thousands of people and college campuses across the U.S. for sharing copyrighted music over the network.^[18] Particularly, students were targeted and most were threatened with a penalty of $750 per song.^[19] Although the lawsuits were mainly in the U.S., other countries also began to follow suit.^[20] Beginning in 2008, however, RIAA announced an end to individual lawsuits.^[21]

While Napster lasted just three years, Kazaa survived much longer. However, the lawsuits eventually ended the company.^[19]

Variations

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Kazaa Lite was an unauthorized modification of the Kazaa Media Desktop application which excluded adware and spyware and provided slightly extended functionality. It became available in April 2002. It was available free of charge, and as of mid-2005 was almost as widely used as the official Kazaa client itself. It connected to the same FastTrack network and thus allowed to exchange files with all Kazaa users, and was created by third party programmers by modifying the binary of the original Kazaa application.^[22] Later versions of Kazaa Lite included K++, a memory patcher that removed search limit restrictions, and set one's "participation level" to the maximum of 1000. Sharman Networks considers Kazaa Lite to be a copyright violation.

After development of Kazaa Lite stopped, K-Lite v2.6, Kazaa Lite Resurrection and Kazaa Lite Tools appeared. Unlike Kazaa Lite, which is a modification of an old version of Kazaa, K-Lite v2.6 and later require the corresponding original KMD executable to run. K-Lite doesn't include any code by Sharman: instead, it runs the user's original Kazaa Media Desktop executable in an environment which removes the malware, spyware and adware and adds features. In November 2004, the developers of K-Lite released K-Lite v2.7, which similarly requires the KMD 2.7 executable.

Other clean variants used an older core (2.02) and thus, K-Lite had some features that others didn't have. K-Lite included multiple search tabs, a custom toolbar, and autostart, a download accelerator, an optional splash screen, preview with option (to view files you are currently downloading), an IP blocker, Magnet links support, and ad blocking, although the clients based on the 2.02 core abstract these functions to third-party programs.

Kazaa Lite Tools was an update of the original Kazaa Lite, with modifications to the third-party programs included, it is newer and includes more tools.

Kazaa Lite Resurrection (KLR) appeared almost immediately after Kazaa Lite development was stopped in August 2003. KLR was a copy of Kazaa Lite 2.3.3.

See also

• μTorrent
• WinMX
• Ares
• Bearshare
• eMule
• iMesh
• LimeWire
• Napster
• The Pirate Bay

References

External links

• "Malware prevalence in the KaZaA file-sharing network". Seungwon Shin, Jaeyeon Jung, and Hari Balakrishnan. 2006.