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Grokster merges while Morpheus gets ready for its courtroom date.


WITH Grokster Ltd. said to be in talks with the legal file-sharing startup Mashboxx, is the pressure mounting on Grokster's local comrades-in-arms like Morpheus to go the legit le·git  
adj. Slang
Legitimate.
 route too?

After all, Grokster and Morpheus, owned by L.A. based StreamCast Networks StreamCast Networks, Inc., is an American corporation, specializing in peer-to-peer software.

Formerly named MusicCity, StreamCast created Morpheus, which was one of the first major peer-to-peer applications.

StreamCast was also a defendant in the MGM v.
 Inc., lost a Supreme Court decision finding that file-sharing companies could be sued for copyright violation if users illegally downloaded music and movies.

But while Grokster appears close to an agreement to be acquired by Sony Corp.-backed Mashboxx, which is getting ready to launch a paid peer-to-peer file-sharing service, Morpheus is taking its own route.

"We expect to return to the trial court to have a trial on the facts," said Matthew Neco, general counsel for StreamCast. "A reasonable jury will find that we did not actively induce copyright infringement Noun 1. copyright infringement - a violation of the rights secured by a copyright
infringement of copyright

plagiarisation, plagiarization, piracy, plagiarism - the act of plagiarizing; taking someone's words or ideas as if they were your own
 and we will be vindicated."

StreamCast just launched Morpheus 5.0, its newest version of peer-to-peer software. Morpheus also introduced a paid platform for its service called "Peer Response," which will offer "a full slate Any political party or faction that seeks to form a majority in a parliament or on a board of directors or other responsible body typically must run a full slate if only to demonstrate that they have the capacity to attract the talent to fill every position with some person, even if that  of legitimate music, game and video downloadable titles to try and buy," according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 a company statement.

Sherman Oaks-based Brilliant Digital Entertainment Inc. is also in the file-sharing business. Its Altnet Inc. distribution business, along with Shaman shaman (shä`mən, shā`–, shă`–), religious practitioner in various, generally small-scale societies who is believed to be able to diagnose, cure, and sometimes cause illness because of a special relationship with, or  Networks Ltd., operator of the Kazan service, lost a copyright infringement case brought by Universal Music Australia. Linked to Kazaa, Altnet has an uncertain future.

In a filing with the Securities and Exchange Commission, Brilliant Digital said it was not generating sufficient cash flow to meet its September obligations and has been trying to work with debt holders and creditors to achieve extensions, with limited success. If the company is unable to achieve more financing, it "would most likely result in our having to file for bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most  protection," the filing said.

Brilliant Digital executives could not be reached.

Staff Reporter Hilary Potkewitz can be reached at (323) 549-5225, ext.226, or by e-mail at hpotkewitz@labusinessjournal.com.
COPYRIGHT 2005 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:TECHNOLOGY
Author:Potkewitz, Hilary
Publication:Los Angeles Business Journal
Geographic Code:1USA
Date:Sep 26, 2005
Words:322
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