Sharman Networks To Appeal Australian Case

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March 12, 2004 (7:59 AM EST)

Sharman Networks has decided to appeal an Australian court ruling that led to unannounced raids on the offices of Sharman and its Kazaa peer-to-peer music-downloading unit.

Sharman has been entangled in court proceedings in the Federal Court of Australia since February, when investigators led by the Australian recording industry swooped down on Sharman's offices and the offices of several firms doing business with Sharman.

In a statement Thursday, Sharman said the judge "failed to consider many of the arguments raised by Sharman Networks. In particular, he failed to consider the non-disclosure by the record industry and the lack of evidence of possession by Sharman of incriminating evidence, and the fact that there was no real possibility of destruction of evidence."

The raids were carried out by the recording industry's Australian representative--Music Industry Piracy Investigations (MIPI)--which claims Kazaa is illegally permitting music to be downloaded under its auspices.

Sharman has asked Judge Murray Wilcox to delay the case until a final verdict is in from U.S. litigation between the recording industry and Sharman. Sharman recently won a judgment involving its Kazaa music-downloading software in the Netherlands.

"This appeal is about standing up for what we believe in--the right for peer-to-peer technology to exist as a legitimate model for digital distribution," said Nikki Hemming, Sharman's CEO, in a statement.

"Our objective is to have Kazaa shut down its illegal activity," MIPI chief Michael Speck has said.