Popular file-sharing site WinMX.com ceased operating and the New York office of another, eDonkey.com, appeared to be closed, in the continuing legal fallout among underworld peer-to-peer music services, industry sources and users said on Wednesday.LOS ANGELES/SAN FRANCISCO (Reuters) - Popular file-sharing site WinMX.com ceased operating and the New York office of another, eDonkey.com, appeared to be closed, in the continuing legal fallout among underworld peer-to-peer music services, industry sources and users said on Wednesday.
The turmoil among file-sharing networks follows the landmark ruling by the U.S. Supreme Court in June that held anyone who distributes a device used to infringe copyright is liable for the resulting acts of infringement by others.
In the wake of the decision, the trade group Recording Industry Association of America (RIAA) last week sent out "cease-and-desist" letters to seven file-sharing groups. A spokeswoman for the RIAA declined to name the targets.
Popular file-sharing sites BearShare, eDonkey and WinMX were reportedly among the targets.
The decentralized nature of most peer-to-peer file-sharing software makes it uncontrollable once it is released over the Internet. However, shutting off sites where users first download the software may strangle the flow of new users.
"There's certainly a big realignment of networks going on after the RIAA letters. Everyone is going to see a fallout since the ruling is making it tough for these companies to exist," said Marc Morgenstern, vice president for Loudeye, during the Digital Hollywood conference in Santa Monica.
An eDonkey executive with a Boston phone number was not immediately available to comment. Industry sources said the phone in the New York office had been disconnected.
A spokesman for Frontcode Technologies, developers of the WinMX application, could not be located to comment.
Users in both Europe and North America complained that the WinMX site (http://www.winmx.com)) was unavailable throughout the day on Wednesday. Free Peers Inc., backers of BearShare, did not respond to attempts to contact them via e-mail.
The latest developments come on the heels of a pending deal in which file-sharing service Grokster Ltd. is set to be acquired by Mashboxx LLC, a new company formed with the intent of establishing a legal peer-to-peer music company, sources familiar with the matter said.
A spokesman for Mashboxx, formed by former Grokster President Wayne Rosso and other partners, declined comment.
Michael Page, a lawyer for Grokster, which makes software that has been widely used to illegally swap music over the Internet, also declined to comment.
Both Grokster and Morpheus, distributed by StreamCast Network Inc., were on the losing end of the Supreme Court's ruling.
Read the full story on extremedrm.com: Copyright Defeats Close WinMX, eDonkey
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