Sharman Networks has grabbed its share of headlines lately. As noted a few days ago by Aaron Hand, Sharman has now integrated their VOIP inteface, SKYPE, into their infamous P2P program, Kazaa. Old criticism of Kazaa for its incorporation of spyware on user's systems has not dissipated either, at least according to Computer Associates, which ranks Kazaa as the worst overall spyware threat, based as much on the shear number of users as on the actual maliciousness of its little presents (Cydoor, Gator, Altnet...)
Amidst all the legal wrangling surrounding P2P networks and applications, Sharman has been unscathed, largely due to their corporate setup, and a win in the Dutch courts a year ago. As described in a brief, but highly informative article in Wired a couple of years ago, the complex, decentralized nature of Sharman's operations (unknown ownership, born in Netherlands, later incorporated in Vanuatu, Kazaa domain name registered in Australia, servers in Denmark, you get the picture - sort of like tracking down Enron's fake revenue schemes) has allowed it to limit its scrutiny to a large degree.
Law enforcement may be about to gain the upper hand on Sharman though, or at least duke it out in court. According to ABC - "A" for Australia - action starts on Monday, "involving more than 50 lawyers.." in a fight launched by the Australian Record Industry Association against Sharman Networks and its partners, including Lef Interactive, Altnet and others. The case may shed some light on the actual ownership of Sharman Networks and some of its more juicy financial details. One news report indicated that Altnet's role within Kazaa was being examined, with the suggestion made that Altnet may essentially be operating a secondary P2P network within the framework of Kazaa, for the dissemination of its spyware. Further details should certainly emerge as a result of the "rare" invocation of Australia's "Anton Piller" order, which when permitted in civil cases, permits litigants to aggressively pursue evidence. Apparently, the residences of several executives as well as corporate offices of some of Sharman's business partners were raided in the months leading up to this drama.
Australia may be a tough battle for Sharman. It certainly appears that their courts mean business. Win or lose, any relevant information from the Anton Piller raids will be unleashed, free like a file on their network.. for any subsequent prosecutions to use as evidence. Barring any legal maneuvering to suppress it, these intimate financial details could well be enough to establish Sharman's secondary liability in US court.
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