Aimster Inc, which lets users exchange files over the Internet, asked a judge to rule that its service doesn't infringe on recording and movie copyrights.
Aimster's parent AbovePeer Inc filed three lawsuits in US District Court in Albany against the Recording Industry Association of America and more than three dozen record labels. A fourth suit was brought against the Motion Picture Association of America and seven movie studios.
In each case, Aimster asks the court to rule the company doesn't infringe any copyrights or that any infringement "was done with innocent intent."
Aimster Chief Executive Johnny Deep said his Troy, New York-based company is a "private parcel service that sends packages in wrappers over the Internet," and is not a music-sharing service like Napster Inc. Deep likened Aimster's encrypted messaging service to private mail sent through the US Post Office.
"AbovePeer has no ability to censor, control or modify encrypted information or data" that users send each other, the lawsuits contend. Aimster "merely provides the means by which members of each network can exchange files." The record labels sued by Aimster include those representing pop singer Britney Spears, rapper Eminem, rockers U2, country singer Faith Hill and cellist Yo-Yo Ma.
In their own suits filed earlier this month in federal court in New York City, the record labels contend Aimster is the same as Napster, "with a few additional functions, such as the copying and distribution of movies, images and software." Unlike Napster, Aimster is also fighting the movie studios, including Fox Entertainment Group Inc's Twentieth Century Fox Film Corp, Walt Disney Co's Disney Enterprises Inc and Sony Corp's Sony Pictures Entertainment Inc.
Movie studios are "worried because what happened to the music industry can happen to the video industry," said Phil Leigh, a digital media stock analyst with Raymond James & Associates. "Napster was at least limiting the file swapping contents to MP3 files."
US District Judge Lawrence Kahn in Albany will decide whether the dispute will be heard in Albany, near Aimster's home base, or New York City, where many of the recording studios are based. The judge on Wednesday ordered lawyers to file briefs on this question within the next two weeks, said Matt Oppenheim, the RIAA's vice president for legal affairs.
Aimster hired David Boies, the attorney who represented Napster, argued for the US government in the Microsoft Corp antitrust trial, and was former Vice President Al Gore's lawyer in the battle over disputed presidential ballots in Florida.
Deep says his service, named for a nickname given his daughter Aimee, was designed for small businesses and home offices who want a free way to send private information over the Internet.
He said the service has about 5 million customers and doesn't collect personal information from them.
"Guarantees of privacy and free speech are more important to us," Deep said. "I would think it's quite unlikely" that most customers are using Aimster to send movies or music over the Web.
"Do you most people use the Post Office to send bootleg CDs? I'm sure some do, but it's not the primary purpose." In their lawsuit, the record labels quoted Deep calling his service "Napster squared."
Aimster and Deep "well know of the massive infringements occurring" through the company's system, the labels' lawsuit alleges. "Defendants initially created their system in order to capitalize on the marketplace success that Napster achieved and to supplant Napster as the preferred forum for the unlawful copying and distribution of copyrighted works." Almost from its inception, Napster has been fending off suits by the recording industry, composers and musicians.
A federal judge in March told Napster that it had to block access to copyright-protected songs or face fines. Since then, the Redwood City, California-based company has blocked access to some copyright music and use has fallen.
Deep wouldn't say how Aimster makes money. "With 5 million customers, we make enough to break even," he said.
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