Lime Wire:

Corporate and Personal Liability

FLAG Meeting
12 January 2011
Frank Jennings

www.dmhstallard.com A Top 100 Law Firm

Lime Wire the latest p2p casualty

www.dmhstallard.com DMH Stallard LLP

The case

• Action against company and

individuals
• Copyright infringement:
inducement, contributory &
vicarious
• 93% of traffic unauthorised
copyright material
• $150,000 per copyright
violation; >$1bn damages

www.dmhstallard.com DMH Stallard LLP

The ruling against LimeWire

• Users infringed copyright through

Lime Wire
• LW intentionally encouraged
infringement by distributing and
maintaining Lime Wire
• Also contributory & vicarious
• Court cannot determine if Lime
Wire capable of substantial non-
infringing uses

www.dmhstallard.com DMH Stallard LLP

The ruling against individuals

• Gorton directed and benefitted

from many of the activities that
gave rise to LW’s liability
• Genuine issue of material fact
whether Gorton intended to
defraud by establishing Lime Wire
FLP and channelling funds from
LW

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 "As a result of our current legal
situation, we have no choice but to
wind down Lime Wire.” "Despite
our dedication and efforts, 31
December 2010 will mark the day
when Lime Wire Store shuts its
virtual doors."

www.dmhstallard.com DMH Stallard LLP

What now?
Info on costs such as royalty
payments

Lime Wire wants 3rd parties to

cooperate with discovery

Damages assessment in April

2011

“Cyberlocker” sites to
proliferate?

www.dmhstallard.com DMH Stallard LLP

Questions?

Frank Jennings, Partner, DMH Stallard LLP

frank.jennings@dmhstallard.com

020 7822 1523

.com

@frjennings
www.dmhstallard.com DMH Stallard LLP