The owners of the Kazaa file-sharing network are suing the movie and recording industries, claiming that they don't understand the digital age and are monopolizing entertainment.
Sharman Networks Ltd filed its counterclaim Monday in response to a copyright-infringement lawsuit brought by several recording labels and movie studios. That lawsuit accuses Sharman of providing free access to copyright music and films to millions of Internet users in the US.
The latest filing came two weeks after US District Judge Stephen Wilson dismissed Sharman's claim that it could not be sued in the US because it is based in Australia and incorporated in the South Pacific nation of Vanuatu.
Wilson had found Sharman subject to US copyright laws because it has substantial usage by Californians and its actions are alleged to contribute to commercial piracy within the US.
Sharman's counterclaim alleges copyright misuse, monopolization and deceptive acts and practices.
"In seeking to simultaneously stop illegal copying and to maintain their dominant position in the distribution of musical and movie content, the industry plaintiffs have obscenely overreached," Sharman said.
It seeks a jury trial, damages, attorney fees and a permanent injunction against the entertainment industry so that it can't "enforce any of their United States copyrights against any person or entity."
Sharman said the entertainment companies are behind the times and don't realize that consumers need not buy CDs, DVDs or videotapes to enjoy music or films.
Sharman also claimed that movie studios "dominate and, when they act in concert, have monopoly power" for the aftermarket distribution of first-run major motion pictures.
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