''Arista Records LLC v. Lime Group LLC'', 715

F. Supp. 2d The ''Federal Supplement'' ( is a case law reporter published by West Publishing in the United States that includes select opinions of the United States district courts since 1932, and is part of the National Reporter System. Although the ''F ...

481 (S.D.N.Y. 2010), is a

United States district court The United States district courts are the trial courts of the United States federal judiciary, U.S. federal judiciary. There is one district court for each United States federal judicial district, federal judicial district, which each cover o ...

case in which the

Southern District of New York The United States District Court for the Southern District of New York (in case citations, S.D.N.Y.) is a federal trial court whose geographic jurisdiction encompasses eight counties of New York State. Two of these are in New York City: New Y ...

held that Lime Group LLC, the defendant, induced

copyright infringement Copyright infringement (at times referred to as piracy) is the use of works protected by copyright without permission for a usage where such permission is required, thereby infringing certain exclusive rights granted to the copyright holder, s ...

with its

peer-to-peer file sharing Peer-to-peer file sharing is the distribution and sharing of digital media using peer-to-peer (P2P) networking technology. P2P file sharing allows users to access media files such as books, music, movies, and games using a P2P software program tha ...

software,

LimeWire LimeWire was a free software, free peer-to-peer file sharing client for Microsoft Windows, Windows, MacOS, Linux and Solaris OS, Solaris. Created by Mark Gorton in 2000, it was most prominently a tool used for the download and distribution of O ...

. The court issued a

permanent injunction An injunction is a legal and equitable remedy in the form of a special court order that compels a party to do or refrain from specific acts. ("The court of appeals ... has exclusive jurisdiction to enjoin, set aside, suspend (in whole or in par ...

to shut it down. The lawsuit is a part of a larger campaign against piracy by the

Recording Industry Association of America The Recording Industry Association of America (RIAA) is a trade organization that represents the music recording industry in the United States. Its members consist of record labels and distributors that the RIAA says "create, manufacture, and/o ...

(RIAA).

Background

LimeWire LLC was founded in June 2000 and released its software program, LimeWire, the following August. LimeWire was widely used; in 2006, when the lawsuit was filed, it had almost 4 million users per day. LimeWire is a program that uses

peer-to-peer Peer-to-peer (P2P) computing or networking is a distributed application architecture that partitions tasks or workloads between peers. Peers are equally privileged, equipotent participants in the network. They are said to form a peer-to-peer n ...

(P2P)

file sharing File sharing is the practice of distributing or providing access to digital media, such as computer programs, multimedia (audio, images and video), documents or electronic books. Common methods of storage, transmission and dispersion include r ...

technology, which permits users to share digital files via an Internet-based network known as

Gnutella Gnutella is a peer-to-peer network protocol. Founded in 2000, it was the first decentralized peer-to-peer network of its kind, leading to other, later networks adopting the model. In June 2005, Gnutella's population was 1.81 million computer ...

; most of these were

MP3 MP3 (formally MPEG-1 Audio Layer III or MPEG-2 Audio Layer III) is a coding format for digital audio developed largely by the Fraunhofer Society in Germany, with support from other digital scientists in the United States and elsewhere. Origin ...

files containing

copyright A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, education ...

ed audio recordings. An

expert report An expert report is a study written by one or more authorities that states findings and offers opinions. In law, expert reports are generated by expert witnesses offering their opinions on points of controversy in a legal case and are typically sp ...

presented during the trial found, in a random sample of files available on LimeWire, that 93% were protected by copyright. These files were distributed, published, and copied by LimeWire users without authorization from the copyright owners, potentially competing with the recording companies' own sale of the music. Thirteen major recording companies led by

Arista Records Arista Records () is an American record label owned by Sony Music Entertainment, a subsidiary of Sony Corporation of America, the North American division of the Japanese conglomerate Sony. The label was previously handled by BMG Entertainmen ...

The thirteen consisted of

LLC (

Sony BMG Sony BMG Music Entertainment was an American record company owned as a 50–50 joint venture between Sony Corporation of America and Bertelsmann. The venture's successor, the revived Sony Music, is wholly owned by Sony, following their buyout o ...

Sony Music Sony Music Entertainment (SME), also known as simply Sony Music, is an American multinational music company. Being owned by the parent conglomerate Sony Group Corporation, it is part of the Sony Music Group, which is owned by Sony Entertainment ...

Atlantic Recording Corporation Atlantic Recording Corporation (simply known as Atlantic Records) is an American record label founded in October 1947 by Ahmet Ertegun and Herb Abramson. Over its first 20 years of operation, Atlantic earned a reputation as one of the most i ...

(

Warner Music Group Warner Music Group Corp. ( d.b.a. Warner Music Group, commonly abbreviated as WMG) is an American multinational entertainment and record label conglomerate headquartered in New York City. It is one of the " big three" recording companies and t ...

BMG Music Bertelsmann Music Group (BMG) was a division of a German media company Bertelsmann before its completion of sale of the majority of its assets to Sony Corporation of America on 1 October 2008. Although it was established in 1987, the music com ...

Capitol Records Capitol Records, LLC (known legally as Capitol Records, Inc. until 2007) is an American record label distributed by Universal Music Group through its Capitol Music Group imprint. It was founded as the first West Coast-based record label of note ...

Inc. (

EMI EMI Group Limited (originally an initialism for Electric and Musical Industries, also referred to as EMI Records Ltd. or simply EMI) was a British transnational conglomerate founded in March 1931 in London. At the time of its break-up in 201 ...

), Elektra Entertainment Group Inc. (Warner Music Group),

Interscope Records Interscope Records is an American record label owned by Universal Music Group through its Interscope Geffen A&M imprint. Founded in late 1990 by Jimmy Iovine and Ted Field as a $20 million joint venture with Atlantic Records of Warner Mus ...

(

Universal Music Group Universal Music Group N.V. (often abbreviated as UMG and referred to as just Universal Music) is a Dutch– American multinational music corporation under Dutch law. UMG's corporate headquarters are located in Hilversum, Netherlands and its ...

LaFace Records LaFace Records was an American record label based in Atlanta, Georgia, that operated as a unit of Sony Music Entertainment from 2008 to 2011 and was historically a part of Bertelsmann Music Group from 1989 to 2004. It was most active and achie ...

LLC (Sony BMG/Sony Music), Motown Record Company, L.P. (Universal Music Group),

Priority Records Priority Records is an American distribution company and record label known for artists including N.W.A, Ice-T, Jay-Z, Snoop Dogg, Big L, Silkk the Shocker and Westside Connection. It also distributed hip hop record labels including Death Row R ...

LLC (EMI),

Sony BMG Music Entertainment Sony BMG Music Entertainment was an American record company owned as a 50–50 joint venture between Sony Corporation of America and Bertelsmann. The venture's successor, the revived Sony Music, is wholly owned by Sony, following their buyout o ...

, UMG Recordings Inc.,

Virgin Records Virgin Records is a record label owned by Universal Music Group. It originally founded as a British independent record label in 1972 by entrepreneurs Richard Branson, Simon Draper, Nik Powell, and musician Tom Newman. It grew to be a worldwid ...

America Inc. (EMI), and Warner Bros. Records Inc. (Warner Music Group) (when sued owned by

, now by

) sued LimeWire LLC, Lime Group LLC,

Mark Gorton Mark Howard Gorton (born November 7, 1966) is the creator of LimeWire, a peer-to-peer file sharing client for the Java Platform, and chief executive of the Lime Group. Lime Group, based in New York, owns LimeWire as well as Lime Brokerage LLC (a ...

, Greg Bildson, and M.J.G. LimeWire Family Limited Partnership for copyright infringement. LimeWire filed

antitrust Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...

counterclaim In a court of law, a party's claim is a counterclaim if one party asserts claims in response to the claims of another. In other words, if a plaintiff initiates a lawsuit and a defendant responds to the lawsuit with claims of their own against th ...

s against the

plaintiff A plaintiff ( Π in legal shorthand) is the party who initiates a lawsuit (also known as an ''action'') before a court. By doing so, the plaintiff seeks a legal remedy. If this search is successful, the court will issue judgment in favor of the p ...

s and ancillary counterclaims for conspiracy in restraint of trade, deceptive trade practices, and tortious interference with prospective business relations, all dismissed by the court in 2007. The recording companies alleged that the software is used to obtain and share unauthorized copies, and that LimeWire facilitated this copyright infringement by distributing and maintaining the software. They claimed that LimeWire was liable for: # inducement of copyright infringement #

contributory copyright infringement Contributory copyright infringement is a way of imposing secondary liability for infringement of a copyright. It is a means by which a person may be held liable for copyright infringement even though he or she did not directly engage in the infringi ...

# vicarious copyright infringement # violations of state

common law In law, common law (also known as judicial precedent, judge-made law, or case law) is the body of law created by judges and similar quasi-judicial tribunals by virtue of being stated in written opinions."The common law is not a brooding omnipresen ...

prohibiting copyright infringement and

unfair competition Unfair may refer to: * Double Taz and Double LeBron James in multiverses ''fair''; unfairness or injustice * ''Unfair'' (drama), Japanese television series * '' Unfair: The Movie'' * Unfair (song), a song by South Korean boy group EXO