File sharing system haunts owners

The Sherman Networks executives who founded the Kazaa peer to peer filesharing system may face jail sentences after an Australian cout found them in contempt. The court said that the defendants failed to implement certain filtering technologies which the court had ordered with a December deadline to help prevent rampant piracy in the music industry.

Coinciding with this judgement, new research shows that illegal file sharing has fallen considerably for the first time since RIAA began its fight against music piracy on the Internet. The NIPD Group says that there is a remarkable 11 percent drop in the filesharing system which users use to trade music using popular networks like Kazaa and Gnutella.