IP Democracy: Limewire Fights Back Against RIAA

P2P tech provider Limewire is trying to turn the tables on the RIAA in the first post-Grokster lawsuit. The feisty start-up has filed some pretty big counterclaims in the lawsuit that the RIAA filed against it in early August, including allegations that the RIAA is violating the antitrust laws by conspiring to restrain trade in the online music business and by using the copyright laws not to defend its intellectual property but to kill competition. “Their goal is quite simple: to prevent the development of any technology—even the Internet— that is not designed and organized to control piracy,” the complaint reads.

In its suit, Limewire contends that the record companies

have engaged in these unfair business practices for the specific purpose of eliminating sources of decentralized peer-to-peer file sharing and acquiring a monopoly over digital distribution of commercially valuable copyrighted music and movie content.

In an intriguing claim, Limewire contends that the record companies have engaged in unfair business practices by requiring online music licensees to negotiate with only record company-controlled businesses, thereby keeping the price of music online artificially high. Moreover, Limewire is accusing the record companies of trying to extend their monopolies by forcing online music providers to work only with their affiliated filtering company, iMesh.

Limewire has developed its own filtering system, which weeds out unauthorized music, but the record companies have refused to provide the metadata needed to identify songs, a prerequisite for the filtering system to work. Limewire contends that the record companies have implemented a plan to force all P2P companies to deal with iMesh, or be sued.

Yet another interesting allegation is Limewire’s contention that the RIAA will issue only “dead-end” licenses, which permit downloading from only a server and not a peer, despite the fact that technology exists, or so Limewire claims, that can track downloading from both servers and peers.

Finally, Limewire believes and alleges that the RIAA issues contracts to ISPs that forbid those ISPs from doing business with P2P software companies, including Limewire.

Limewire is seeking damages under all the relevant Federal and State laws and seeks attorneys fees.

Posted by Cynthia Brumfield on September 27, 2006 8:20 AM to IP Democracy