Quote:
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Our business, results of operations and financial condition could be materially adversely affected if we do not maintain our distribution relationship with Sharman Networks on acceptable terms or if this relationship does not achieve the projected distribution of our Digital Projector and Altnet software. Additionally, a disruption in the distribution of the KaZaA Media Desktop or a decrease in demand for the product by users would necessarily impact the future distribution of our technology. The KaZaA Media Desktop, as well as other peer-to-peer software products, is currently the subject of a lawsuit; Metro-Goldwyn-Mayer Studios, Inc. et. al. v. Grokster, Ltd. et. al., filed in the United States District Court for the Central District of California (Western Division) by twenty-eight entertainment companies claiming that, among other things, the KaZaA Media Desktop facilitates, contributes to and encourages copyright infringement. On November 18, 2001, there was an additional complaint filed, Lieber et. al v. Consumer Empowerment B.V., et. al. To the extent that Sharman Networks is precluded from distributing the KaZaA Media Desktop as a result of this litigation, it would prevent the further distribution of the Digital Projector and Altnet peer-to-peer software with the KaZaA product which could have a material adverse affect on our business and financial condition.
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Yes yes yes. So they are very well aware of just how much their business modell depends on the satisfaction of KaZaA and Grokster users. If they are clever, they can use this to their - and our - advantage as well. If what TG writes would occur, it would wipe out their business as well - so it is their very interest to develop technology that would protect us from such hack attempts, and their perusal of our bandwidth must be entirely transparent for us. There is no quarantee of course that this could work. They may be very well make pacts with doubleclick and other spyware companies. But they also can do it in a different way. For instance, if my spare bandwidth is used solely for distribution purposes, like sending chunks of different files trough my bandwidth, and not for tracking my surfing habits, I would consent to that. But you are right TG, it is very likely that they would not see us as the backbone of a distribution network, but also as potential consumers... On the other hand, the other idea, that is using idle processing power or "lenting" it for companies that don't have the means or the financial background to buy supercomputers sounds much better, since it is less likely that they can abuse us by it.
I think this "project" has very great potentials if they know how to use it and alienating us, the backbone of their business model, by abusing our trust is just not a clever way to do business. But seeing how Morpheus screwed up or the stupidity of RIAA, I'm not too optimist...