Digital Legal Top Stories

Merlin sues LimeWire

By | Published on Monday 18 July 2011


Indie sector digital rights body Merlin is suing the remnants of LimeWire over allegations the one time king of P2P has reneged on an earlier agreement to compensate the independent labels Merlin represents for the copyright infringement the digital firm enabled.

As much previously reported, LimeWire was found to be liable for the copyright infringement its technology enabled last year, leading to the digital company to shut up shop. Subsequent damages lawsuits from the US record and publishing industries resulted in out of court settlements of $12 million and $105 million respectively.

But the Recording Industry Association Of America, which pursued the main litigation against LimeWire, only represents the major record companies. According to reports, Merlin, representing many of the indies, previously reached its own agreement with the digital firm to the effect that they would pay Merlin members the same damages as the majors, if and when any such damages were agreed, on a pro rata basis based on market share.

But, Merlin’s new lawsuit reportedly says, since LimeWire agreed to the $105 million pay out to the majors in May all has gone quiet. It adds that the labels Merlin represents account for about 7.5% of the US market, and that – after reasonable deductions – they are therefore due about $5 million in damages.

Neither Merlin nor LimeWire have, as yet, commented on the new litigation.