Lime Wire files counter-suit

In its counter-suit, Lime Wire states that the record labels launched their own digital-distribution Web sites and alleges that the labels joined forces to be the sole recipients of any financial benefit, according to CNET News. Lime Wire\'s suit also argues that the record companies combined and conspired to restrain trading in the market for online distribution of recorded music and, as a result, violated sections of the Sherman Act and the Clayton Act. However, the Recording Industry Association of America, which has led the legal front against P2P companies on behalf of music labels, maintains that Lime Wire\'s business is based on copyright infringement. Full CNET News report

Staying in the US, where Federal Judge Stephen Wilson has ruled that the Morpheus file-sharing software encourages millions of users to share music, movies and other works without authorisation. AustralianIT reports that Wilson ruled that StreamCast Networks, the distributor of Morpheus, had contributed to massive copyright infringement because it had constructed a business model that relied on massive copyright infringement and did not attempt to block the trading of copyrighted materials. Last year, the US Supreme Court issued a landmark decision, ruling that some technology firms could be held liable for distributing software used to violate copyrights. Full AustralianIT report

Moving to Sweden, where a man suspected of sharing a movie online has been acquitted by the Svea Court of Appeal. According to The Register, the Swedish Court of Appeal overruled the previous district court decision, saying there was insufficient proof that the movie was uploaded from the man\'s computer. The only evidence remaining in the original case was that his ISP, Bredbandsbolaget, confirmed that the IP address belonged to the man. In its judgment the court pointed out that illegal file sharing could have major consequences for the film industry and that \'one should therefore take this crime seriously\'. Some believe the ruling will make it extremely difficult for the film industry and other interest groups to pursue the issue in the courts. Full report in The Register