IFPI says Kazaa deal with Tiscali will hurt legitimate online music business

September 24, 2002

IFPI Chairman and CEO Jay Berman today spoke out against the agreement between KaZaA, the peer-to-peer file-swapping service and the Italian internet service provider Tiscali.

Berman said: "I am shocked that Tiscali, a company already hosting a legal service, believes that by entering into an agreement with an unauthorised service it will promote the development of legitimate online musical offerings. The opposite is more likely to be true - by subsidising KaZaA, Tiscali is jeopardizing the development of legitimate online services, and it is important that internet service providers everywhere understand this.

"Tiscali's claim that 'this is an important step in creating a legal market' is absolute nonsense. The 'bounty' that Tiscali is willing to pay to encourage consumers to adopt its broadband services will be paid at the expense of everyone in the musical chain and without their consent - from songwriters to music publishers, from studio musicians to featured artists, and to the record companies that have invested in these recordings. The recording industry is already in litigation against KaZaA and we believe the courts will confirm that this is a pirate business."

NOTES FOR EDITORS

1. The New York Times on September 23 carried a story that KaZaA was planning to announce a partnership with Tiscali, a major Italian internet provider. Under the deal Sharman Networks Ltd., owner of KaZaA, will advertise Tiscali's high-speed internet access to its tens of millions of users in Europe. In return Tiscali is to pay Sharman a 'bounty' for each KaZaA user who signs up for the high-speed service.

2. The Recording Industry Association of America (RIAA) has filed a motion for summary judgement in the contributory copyright infringement case against KaZaA and similar services in the USA. The motion is due to be heard in the USA on December 2, 2002. The RIAA is optimistic the court will grant its motion.

For further information contact Adrian Strain or Fiona Harley at IFPI
tel: +44 (0)020 7878 7900