Audiogalaxy Halts Downloads, Settles With Music Industry


reached a settlement with the Recording Industry Association Of America (RIAA)

and the National Music Publishers Association (NMPA), agreeing to obtain permission

from copyright holders before allowing users to swap songs. The agreement halted

all trading of songs yesterday (June 17). Audiogalaxy had already started filtering

songs in an attempt to avoid the same fate as Napster, which was once the king

of file sharing on the net. Earlier this month, Napster filed for bankruptcy


"We are pleased to settle this case quickly.

This is a victory for everyone who cares about protecting the value of music,"

said Hilary Rosen, Chairman and CEO of the RIAA. "This should serve as

a wake-up call to the other networks that facilitate unauthorized copying. The

responsibility for implementing systems that allow for the authorized use of

copyrighted works rests squarely on the shoulders of the peer-to-peer network."

Under the terms of the settlement, Audiogalaxy

is required to obtain permission from a songwriter, music publisher or recording

company to share copyrighted works. Audiogalaxy has also agreed to pay music

publishers and the recording industry an out of court settlement. Terms were

not immediately disclosed.

"The message is clear – there is no

place on the Internet for services that exploit creators' work without fair

compensation," added Edward P. Murphy, President and CEO, NMPA. "Such

services hurt creators and hurt the legitimate Internet businesses that wish

to comply with the law and compensate the creators. The swift resolution of

this matter is thus a double victory that creators and legitimate Internet businesses

should join in hailing."

Users of the file sharing service were less than

thrilled with Monday's settlement. "AG surrendered before the battle started.

It must give the industry more strength and hope," user DropZak said. "Now

they think you will rush to the shops and a buy a highly expensive cd."

User MTVandTRLsucks was a little more aggressive.

"Audiogalaxy gave me the option of not spending $19 on a piece of sh*t

CD that has 1 good song and 17 tracks of filler. Most of the stuff I did download

was hard as hell to track down in your average Sam Goody/Waves. Some of the

remixes I've downloaded would never be found in such a commercialized business.

I hope you're happy, RIAA. As you shut down another peer to peer service, another

10 are being created. Good luck you sorry f*ckers, you'll need it."