Fashionow Taiwan Inc (飛行網), which runs the nation's largest peer-to-peer (P2P) music file-sharing site Kuro, announced yesterday that it had reached a settlement with the International Federation of the Phonographic Industry (IFPI) in Taiwan.
The company also obtained authorization from major record labels that allows its users to swap music files legally via the Kuro platform, Fashionow said in a statement released yesterday.
Fashionow agreed to pay IFPI compensation to settle the dispute, Fashionow public relations manager Wang Song-ching (王松青) said in a phone interview. Wang declined to disclose the amount, citing confidentiality clauses.
The company's chairman, chief executive and president were found guilty of violating intellectual property rights by the Taipei District Court in September last year, and the trio were sentenced to two to three years in prison and fined NT$3 million (US$91,140) each.
Fashionow is appealing the case.
IFPI Taiwan will inform the judge of the settlement reached by both parties, which may make any ruling more favorable to the defendants, Wang said.
With C-Media Electronics Inc (
Inspired by the success of Apple Computer Inc's bundling of its player and online music store, the new Kuro will duplicate the business model, she said.
Kuro will stop recruiting new subscribers from tomorrow, and will open for new members after the new site is launched, Wang said, without giving a timeframe.
Kuro boasts about 400,000 subscribers.
Because the company needs to share part of its income with copyright holders, the monthly charge will be higher than the current fee of NT$149, Wang said, without giving an exact figure.
Kuro's smaller rivals Ezpeer+ and KKBOX are charging their users a monthly fee of NT$99 to NT$149 for unlimited swaps or online listening.
Wang said Kuro will introduce a "killer service" to users in the new platform, which the company believes will secure its leading position in the market.
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